India's Construction Sector Set to Grow by 7–7.5% in FY2026: ICRA Forecasts Cautious Optimism Amid Execution Challenges
Steady Growth Expected in FY2026 India's construction sector is projected to grow at a pace of 7.0–7.5% in FY2026 , according to a recent outlook by ICRA , one of the country’s leading credit rating agencies. This follows a decade of consistent growth, with the sector recording an average annual expansion of 6.9% between FY2016 and FY2025 . The outlook remains “Stable” , underpinned by: A healthy pipeline of infrastructure projects Strong visibility in the order book Continued emphasis on public capital expenditure (capex) However, profitability improvements may remain subdued due to high competitive intensity and delays in project execution. Revenue Growth Estimates Revised Downward While the sector remains on a growth trajectory, ICRA has revised its revenue growth forecast for FY2026 to 6–8% , lower than the earlier estimate of 8–10% . This downward revision is attributed to: Slowdown in road-awarding activity , particularly by the Ministry of Road Transp...