India has 15,580 infrastructure projects worth $2,388.9 billion under development, with annual government allocations exceeding ₹11 lakh crore. Transportation accounts for 40% of projects while renewable energy drives the second-largest segment, creating unprecedented opportunities for equipment manufacturers.
More than 15,580 infrastructure projects worth $2,388.9 billion are currently under development across India. The government has allocated ₹11.21 lakh crore for infrastructure in the Union Budget 2025-26, representing 3.1% of GDP.
This massive pipeline creates immediate procurement opportunities for B2B equipment manufacturers and suppliers who can serve two interconnected ecosystems: logistics and transportation infrastructure, and industrial development, including manufacturing hubs and urban housing.
Transportation infrastructure accounts for approximately 40% of all ongoing infrastructure projects, while utility infrastructure driven by renewable energy represents the second-largest segment. The scale of opportunity stems from India's fundamental economic transformation as the country races toward its $5 trillion GDP target.
Four interconnected forces are accelerating infrastructure investment and creating sustained equipment demand.
Urbanization Reshaping Demand: India's urban population is projected to rise from 35% in 2023 to over 47% by 2050. This shift creates new economic hubs and drives demand for transportation networks, industrial facilities, power infrastructure, and housing.
Domestic Consumption as Economic Engine: Domestic consumption accounts for approximately 60% of India's GDP. The middle class is projected to reach 46% of the population by 2030 and over 60% by 2047. With 65% of the population under 35, young urban consumers are creating new markets that require an infrastructure backbone.
Services and Manufacturing Integration: Services contribute about 50% of Gross Value Added and have made India a global hub for IT, financial services, and telecommunications. Manufacturing requires infrastructure support to achieve government ambitions. The integration of services with physical infrastructure creates opportunities for smart systems, automation equipment, and technology-enabled solutions.
Policy and Investment Momentum: The government promotes public-private partnerships, simplified regulations, and new financing tools. InvITs have mobilized Rs 1.3 lakh crore since 2019-20 to fund asset expansion. The National Infrastructure Pipeline and PM Gati Shakti provide visibility into project timelines, allowing equipment suppliers to align production planning with procurement cycles.
The logistics market is valued at over $310 billion and estimated to reach $320 billion by 2025. India intends to reduce logistics costs from 14% to 8% of GDP, leading to a reduction of approximately 40% within the next five years. This transformation requires warehouse automation, material handling systems, fleet management equipment, and cold chain infrastructure.
Government Investment: The Union Budget 2025-26 allocated Rs 2.87 trillion for the Ministry of Road Transport and Highways. The government launched Bharat Trade Net, a comprehensive digital platform for streamlining supply chain operations.
Roads and Expressways: India's road investments exceed $125 billion in planned expressways, with National Highways Authority allocation increasing to Rs 1.87 trillion. Equipment demand spans asphalt plants, paving machinery, road milling equipment, compaction systems, and bridge construction gear.
Railways and Metro Networks: The Union Government allocated Rs 2.65 trillion for Indian Railways. India achieved a milestone of 1,000 kms of metro rail network, with 810 kms operational in 20 cities. The country possesses the fifth-largest metro network globally and will soon overtake Japan and South Korea to become the third-largest. Funds worth Rs 312.39 billion were allocated for metro rail and mass rapid transit system projects, 46.41% higher than the previous budget. This expansion requires rolling stock manufacturing equipment, signalling systems, electrification equipment, and track-laying machinery.
Waterways and Ports: A Maritime Development Fund with a corpus of Rs 25,000 crore has been established, with 49% government contribution. Port modernization programs are expanding marine infrastructure needs, opening opportunities for cargo management equipment, vessel support systems, gantry cranes, and port digitalization solutions.
Aviation Infrastructure: Airport Developers have targeted capital outlay of approximately $11.8 billion over the next five years for new construction, expansion and modification of existing terminals. This creates procurement opportunities for ground support equipment, baggage handling systems, passenger boarding bridges, and security screening equipment.
Warehousing and Cold Chain: Industrial and logistics space absorption grew by 25% year-on-year in 2024. India's cold chain market is projected to grow from $10.5 billion in 2024 to $74.5 billion by 2033, at a CAGR of 24.7%. The Pradhan Mantri Kisan SAMPADA Yojana is expected to leverage investment of Rs 11,095.93 crore for cold chain infrastructure by 2025-26. Equipment opportunities include automated storage and retrieval systems, temperature control systems, refrigeration equipment, and warehouse management systems.
Manufacturing contributes 28% to India's GDP. With 5.93 crore registered MSMEs employing more than 25 crore people, these enterprises generate significant economic output. MSME-related products accounted for 45.73% of India's total exports in 2023-24.
Government Investment: A new scheme with an allocation of Rs 2,500 crore has been introduced to develop plug-and-play industrial parks with complete infrastructure. The Department for Promotion of Industry and Internal Trade received a 64% budget increase to Rs 13,145.06 crore to support industrial development.
Plug-and-Play Parks: According to a Cushman & Wakefield survey, 88% of manufacturers are scaling up due to infrastructure-led confidence. These pre-entitled, fully serviced zones drastically reduce setup time and capital costs, allowing production to begin within weeks. Equipment needs include power distribution systems, water treatment plants, material handling equipment, warehouse automation solutions, and environmental control systems.
Industrial Equipment Demand: Facilities require automated manufacturing lines, smart factory solutions, industrial IoT systems, energy management equipment, and specialized process equipment. The emphasis on Make in India and Production-Linked Incentive schemes encourages domestic manufacturing of equipment.
India is the world's third-largest energy consumer and reached a peak demand of 223 GW in June 2023 with over 400 GW installed capacity. ₹48,396 crore has been allocated to the power sector, focusing on grid modernization, smart metering, and infrastructure upgrades.
Government Investment: The government targets 500 GW of non-fossil energy by 2030, with 179 GW already installed, including 67 GW solar and 43 GW wind. The National Green Hydrogen Mission has an outlay of $2.4 billion. Smart meter rollout targets 250 million units by 2025. A target of 100 GW nuclear power capacity by 2047 has been set, with a ₹20,000 crore research initiative for Small Modular Reactors.
Renewable Energy Expansion: India added a record 34.40 GW of new solar and wind capacity during the first nine months of 2025, marking a 71% rise compared to the same period last year. Solar capacity increased by 68.90%, while wind installations grew by 88.80%. Total installations are expected to reach 45 to 46 GW by the end of 2025. This explosive growth creates sustained demand for solar PV modules, wind turbine generators, inverters, mounting structures, transformers, and balance of system components. Public Sector Banks sanctioned over 5.79 lakh loan applications worth Rs 10,907 crore for rooftop solar projects, indicating strong downstream demand.
Energy Storage Systems: Battery Energy Storage Systems saw significant growth, with 5.4 GW of collocated solar-BESS and 2.2 GW of standalone BESS awarded to developers. Equipment suppliers specializing in battery management systems, inverters, thermal management equipment, and grid integration systems have expanding opportunities.
Grid and Transmission: Grid modernization requires smart grid equipment, advanced metering infrastructure, transmission line hardware, and substation equipment. The emphasis on renewable energy integration creates demand for grid stabilization equipment and energy storage systems.
While transportation and industrial infrastructure drive the bulk of equipment procurement, urban housing development creates complementary demand. India faces a cumulative shortfall of 31.2 million affordable housing units by 2030, representing a market worth ₹67 trillion. Maharashtra Housing Policy 2025 targets constructing 35 lakh houses in five years, mobilizing Rs 70,000 crore investment. Construction machinery demand includes earthmoving equipment, concrete batching plants, tower cranes, and material handling systems. However, this segment operates on different procurement cycles than infrastructure projects and often involves smaller, more fragmented buyers.
Large Equipment Manufacturers can pursue direct relationships with major contractors, developers, and government entities. The scale of projects favours suppliers who can handle large orders, provide comprehensive solutions, offer financing support, and maintain after-sales service networks nationwide.
Specialized Equipment Providers in areas like automation, renewable energy, cold chain, and smart infrastructure can command premium margins by solving specific technical challenges. Advanced technology suppliers offering IoT-enabled equipment and data connectivity have opportunities as India emphasizes technology integration.
Component Suppliers can integrate into larger equipment manufacturers' supply chains, particularly those meeting local content requirements under Make in India. Success requires understanding original equipment manufacturers' procurement cycles and quality standards.
Service and Maintenance Providers benefit from long-term infrastructure assets requiring ongoing maintenance. Opportunities exist for suppliers of spare parts, specialized tools, maintenance equipment, and training services.
We help global equipment and technology providers enter and scale successfully in India's expanding infrastructure ecosystem through every stage of market expansion, from assessment to execution.
Business & Market Assessment: We evaluate your positioning, assess opportunities and identify capability gaps. Our analysis includes competitive benchmarking, customer insights and demand mapping.
India Strategy & Execution Roadmap: We help define your India strategy, covering business model, partner selection, pricing and localization approach, followed by an execution roadmap that aligns leadership, operations and sales goals with India's infrastructure priorities.
Leadership & Capability Development: We help you build and mentor high-performing local teams, develop leadership capacity and train teams to manage customer relationships and service delivery across India's diverse infrastructure landscape.
Ongoing Execution Support: Our consultants work alongside your team to track progress, review performance and ensure that your India operations scale effectively across project cycles and regional markets.
For equipment manufacturers, success lies in understanding project dynamics, localizing offerings, building strategic partnerships with contractors and developers, and establishing a presence in high-growth infrastructure corridors.
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