India Construction Industry: GDP Growth, Cement, Steel and Investment Indicators

In India's national accounts, construction is one of the activities in the secondary sector. The others are manufacturing and electricity, gas, water supply and other utility services [1]. MoSPI publishes quarterly GDP and GVA estimates at constant 2022-23 prices. The new series with base year 2022-23 was released on 27 February 2026 [1].

In Q1 (April-June) of FY 2026-27, real GDP was estimated at INR 81.36 lakh crore, up from INR 75.46 lakh crore a year earlier. That is growth of 7.8% [1]. Real GVA grew 8.2% to INR 73.82 lakh crore [1].

MoSPI's annexure of year-on-year growth in indicators includes several inputs that track building activity. All of them grew faster in Q1 FY 2026-27 than in Q1 FY 2025-26 [1]:

• Cement Production Index: 8.9%, up from 7.3% [1].
• Finished steel consumption: 8.3%, up from 8.0% [1].
• IIP infrastructure/construction goods: 7.2%, up from 6.1% [1].
• Goods transport vehicle registrations: 20.1%, up from 6.1% [1].
• IIP capital goods: 15.2%, up from 8.8% [1].

These are input indicators, not construction GVA itself. The press note shows sector-level GVA growth only in charts.

In MoSPI's Provisional Estimates for FY 2025-26, released on 5 June 2026, real GDP grew 7.7% for the year [2]. In Q4 of FY 2025-26, gross fixed capital formation (GFCF) grew 10.8% at constant prices. Private final consumption expenditure grew 7.1% [2]. GFCF covers construction of buildings and infrastructure, as well as machinery and equipment.

MoSPI's earlier First Advance Estimates for FY 2025-26 projected growth of 7.0% at constant prices for manufacturing and construction in the secondary sector [3].

This report uses the MoSPI Q1 FY 2026-27 GDP press release published by PIB [1], the MoSPI press note on Q4 and Provisional Estimates for FY 2025-26 [2], and the MoSPI First Advance Estimates press note for FY 2025-26 [3]. All growth rates are year-on-year, as published by MoSPI. Growth rates for GDP, GVA and GFCF are at constant 2022-23 prices. Indicator growth rates come from MoSPI's annexure. Indian fiscal years run from April to March. The press release text does not state the quarterly growth of construction-sector GVA, so this report does not give that figure. Union budget capital expenditure is out of scope for this edition. The report contains no FREEE.REPORT calculations.