The Indian construction industry, a significant contributor to the nation's GDP, is experiencing robust growth, fueled by increasing urbanization, infrastructure development initiatives like the Bharatmala Project and Smart Cities Mission, and a burgeoning real estate sector. The market size, while not explicitly stated, can be reasonably estimated based on the provided CAGR of >6.00% and a global context. Considering the scale of India's infrastructure projects and population, a 2025 market size in the range of $200-300 billion USD is plausible, translating to a substantial number of millions in the specified value unit. This growth is propelled by multiple sectors: Commercial construction caters to the rising demand for office spaces and shopping malls; Residential construction addresses the housing shortage in urban areas and rising disposable incomes; Industrial construction supports manufacturing expansion and foreign investment; Infrastructure projects (transportation) are crucial for connecting diverse regions, while Energy and Utilities construction is essential for supporting the country's power needs. Key players like Lodha Group, L&T, and others are driving innovation and shaping the market landscape. However, challenges remain. Land acquisition complexities, regulatory hurdles, fluctuating raw material prices (especially cement and steel), and skilled labor shortages pose significant constraints to growth. While the government actively promotes ease of doing business, streamlining these processes is crucial to maintain the industry's momentum. The industry is also adapting to sustainable practices, incorporating green building technologies and materials to minimize environmental impact, in line with global sustainability goals. This shift towards sustainable construction, though initially increasing costs, is projected to become a driving force for long-term growth, attracting environmentally conscious investors and consumers. The forecast period of 2025-2033 is poised for further expansion, driven by continued government investment and a growing private sector participation, making India a highly attractive market for construction companies globally. Construction Industry in India: A Comprehensive Market Report (2019-2033) This report provides a detailed analysis of the Indian construction industry, covering the period from 2019 to 2033. With a base year of 2025 and a forecast period spanning 2025-2033, this in-depth study leverages historical data (2019-2024) to offer invaluable insights into market trends, growth drivers, challenges, and future projections. The report uses millions (Million) as its unit of measurement for key figures. Recent developments include: March 2023: L&T has inked an MoU with Odisha-based non-profit SLS Trust for setting up a Skill Training Hub at Badampahar in Odisha's Mayurbanj district. This facility will comprise classrooms, state-of-the-art simulators, yards for practical training, and residential accommodation for the trainees., November 2022: MEIL is building Mongolia's first greenfield oil refinery in Telangana. Megha Engineering & Infrastructures Limited (MEIL) has received a Letter of Award (LOA) for the Mongolia Refinery Project, which includes the construction of Mongolia's first oil refinery. MEIL will build EPC-2 (Open Art Units, Utilities & Offsites, Plant Buildings) and his EPC-3 (Captive Power Plants) in Mongolia at a cost of US$790 million. Engineers India Limited is the project management consultant for this G2G partnership project. The project is part of the 'Development Partnership Management' initiative of the Ministry of External Affairs, Government of India.. Key drivers for this market are: Government Initiatives, Demand for office and retail space. Potential restraints include: Lack of Skilled Labor, Supply chain issues and rising material costs. Notable trends are: Infrastructure projects drives the market.

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India Foundry Market Size 2025-2029

The India foundry market size is forecast to increase by USD 30.32 billion at a CAGR of 15.5% between 2024 and 2029.

The foundry market is experiencing significant growth, driven by the increasing focus on technology upgrades, particularly the integration of Artificial Intelligence (AI) in foundry design processes. This technological advancement enables improved efficiency, productivity, and cost savings for manufacturers. This industry serves diverse sectors, including construction, aerospace, electronics, and industrial machinery. Moreover, environmental concerns are leading to increased environmental costs, pushing the market towards the adoption of more sustainable practices. These trends are shaping the foundry industry landscape and are expected to continue influencing market growth In the coming years. Additionally, the implementation of stringent regulations to reduce emissions and improve energy efficiency is further propelling the market forward. Overall, these factors present both opportunities and challenges for market participants, requiring them to stay abreast of the latest technological advancements and regulatory requirements to remain competitive.

What will be the Size of the market During the Forecast Period?

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The foundry market encompasses the production of metal castings through various processes, including ferrous and non-ferrous foundries specializing in sand casting, die casting, and other techniques. The market's size is substantial, with significant demand from OEMs and the Internet of Things (IoT) sector for electrical and mechanical components. Ferrous foundries primarily focus on producing gray iron casting, ductile iron casting, and steel casting, while non-ferrous foundries specialize in nonferrous casting. The industry's growth is driven by increasing demand for lightweight, high-strength components in various applications. Technological advancements, such as 3D printing and advanced casting designs, are also transforming the market.
Despite this, traditional processes like sand casting continue to dominate due to their cost-effectiveness and versatility. Employment In the foundry sector includes both direct and indirect jobs, with the industry contributing significantly to the global economy. The market's future direction is promising, with continued innovation and expanding applications in various sectors.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Automotive
  Electrical and construction
  Industrial machinery
  Agriculture
  Others


Type

  Gray iron casting
  Non-ferrous casting
  Ductile iron casting
  Steel casting
  Malleable casting


Material

  Ferrous
  Non-ferrous


Geography

  India

By End-user Insights

The automotive segment is estimated to witness significant growth during the forecast period.

The Indian foundry industry, a significant contributor to the auto components sector, has witnessed steady growth since 2010. Factors driving this expansion include a strong end-user market, improved consumer sentiment, and financial system liquidity. With nearly 7% share in India's GDP and close to 20 million employees, this industry is vital. A stable regulatory environment, increasing purchasing power, a vast domestic market, and infrastructure development make India an attractive investment destination. In 2023, India produced approximately 25 million tons of castings, encompassing Ferrous (Gray Iron, Ductile Iron, and Steel) and Non-Ferrous (Aluminum, Zinc, and Copper) varieties. Foundries employ automation, robotics, digitalization, green practices, and energy efficiency to meet the demands of various sectors, including Construction, Large Scale, Automotive OEMs, Aerospace, Electronics, and more.

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Market Dynamics

Our India Foundry Market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of India Foundry Market?

Focus on technology upgrades is the key driver of the market.

The Indian foundry market is experiencing significant growth due to the increasing demand for metal castings in various sectors, particularly the automotive industry. In 2023, India produced approximately 22.9 million vehicles, leading to increased demand for automotive components. To meet this demand, foundries are investing in advanced technologies and equipment. F

Abstract

This survey was conducted in India between June 2013 and December 2014 as part of the Enterprise Survey project, an initiative of the World Bank. The objective of the survey is to obtain feedback from enterprises on the state of the private sector as well as to help in building a panel of enterprise data that will make it possible to track changes in the business environment over time, thus allowing, for example, impact assessments of reforms. Through interviews with firms in the manufacturing and services sectors, the survey assesses the constraints to private sector growth and creates statistically significant business environment indicators that are comparable across countries.

The standard Enterprise Survey topics include firm characteristics, gender participation, access to finance, annual sales, costs of inputs/labor, workforce composition, bribery, licensing, infrastructure, trade, crime, competition, capacity utilization, land and permits, taxation, informality, business-government relations, innovation and technology, and performance measures. Over 90% of the questions objectively ascertain characteristics of a country's business environment. The remaining questions assess the survey respondents' opinions on what are the obstacles to firm growth and performance.

Data from 9,281 formal establishments was analyzed. Stratified random sampling was used to select the surveyed businesses. Data was collected using face-to-face interviews.

Geographic coverage

National

Analysis unit

The primary sampling unit of the study is the establishment. An establishment is a physical location where business is carried out and where industrial operations take place or services are provided. A firm may be composed of one or more establishments. For example, a brewery may have several bottling plants and several establishments for distribution. For the purposes of this survey an establishment must make its own financial decisions and have its own financial statements separate from those of the firm. An establishment must also have its own management and control over its payroll.

Universe

The whole population, or universe of the study, is the non-agricultural economy. It comprises: all manufacturing sectors according to the group classification of ISIC Revision 3.1: (group D), construction sector (group F), services sector (groups G and H), and transport, storage, and communications sector (group I). Note that this definition excludes the following sectors: financial intermediation (group J), real estate and renting activities (group K, except sub-sector 72, IT, which was added to the population under study), and all public or utilities-sectors.

Kind of data

Sample survey data [ssd]

Sampling procedure

The sample was selected using stratified random sampling. Three levels of stratification were used: industry, establishment size, and region.

For stratification by industry, the universe was stratified into 11 manufacturing industries (food, textiles, chemicals, rubber/plastics, non-metallic mineral products, basic metals, fabricated metal products, machinery and equipment, electrical machinery and communications equipment, motor vehicles, and other manufacturing), and 7 services industries (construction, sales and repair of motor vehicles, wholesale, retail, hotels and restaurants, transportation/storage/communications, and IT).

Size stratification was defined following the standardized definition for the rollout: small (5 to 19 employees), medium (20 to 99 employees), and large (more than 99 employees). For stratification purposes, the number of employees was defined on the basis of reported permanent full-time workers. This seems to be an appropriate definition of the labor force since seasonal/casual/part-time employment is not common practice, apart from the construction and agriculture sectors which are not included in the survey.

Regional stratification was defined in 23 states. Delhi was included as a state for stratification purposes, whereas the 6 other UT's were excluded from the survey project (due to their very small size and low contribution to national GDP). The states of Sikkim and Mizoram were also excluded as their share of national GDP was less than 0.1%. At the onset of the survey project, Andhra Pradesh included Telangana (hence Telangana was not considered as its own state). The states of Arunachal Pradesh, Nagaland, Manipur, Tripura, and Meghalaya were combined and considered one state (Arunachal Pradesh) for the purposes of stratification. The survey focused on major cities and the surrounding business area.

For manufacturing establishments, the sample frame used for the survey in India was from the 2013 Annual Survey of Industries compiled by the Central Statistics Office of the Ministry of Statistics and Programme Implementation.

For services establishments, industry associations lists were used to create lists from which to randomly sample from.

Given the impact that non-eligible units included in the sample universe may have on the results, adjustments may be needed when computing the appropriate weights for individual observations. The percentage of confirmed non-eligible units as a proportion of the total number of sampled establishments contacted for the survey was 14.9% (566 out of 3,789 establishments).

Mode of data collection

Face-to-face [f2f]

Research instrument

The structure of the data base reflects the fact that two different versions of the questionnaire were used for 3 categories of businesses (manufacturing, retail, and other services/non-retail). The Manufacturing Questionnaire includes all common questions asked to all establishments and some specific questions relevant to manufacturing firms. The Services Questionnaire, administered to retail and other services/non-retail establishments, includes all common questions asked to all establishments and some specific questions relevant retail and other services firms. Each variation of the questionnaire is identified by the index variable, a0.

All variables are named using, first, the letter of each section and, second, the number of the variable within the section, i.e. a1 denotes section A, question 1. Variable names proceeded by a prefix "SAR" or "IND" indicate questions specific to the South Asia region or India only, therefore, they may not be found in the implementation of the rollout in other countries. All other suffixed variables are global and are present in all country surveys over the world. All variables are numeric with the exception of those variables with an "x" at the end of their names. The suffix "x" denotes that the variable is alpha-numeric.

Cleaning operations

Data entry and quality controls are implemented by the contractor and data is delivered to the World Bank in batches (typically 10%, 50% and 100%). These data deliveries are checked for logical consistency, out of range values, skip patterns, and duplicate entries. Problems are flagged by the World Bank and corrected by the implementing contractor through data checks, callbacks, and revisiting establishments.

Response rate

Survey non-response must be differentiated from item non-response. The former refers to refusals to participate in the survey altogether whereas the latter refers to the refusals to answer some specific questions. Enterprise Surveys suffer from both problems and different strategies were used to address these issues.

Item non-response was addressed by two strategies: a- For sensitive questions that may generate negative reactions from the respondent, such as corruption or tax evasion, enumerators were instructed to collect the refusal to respond as a different option from don’t know. b- Establishments with incomplete information were re-contacted in order to complete this information, whenever necessary.

Survey non-response was addressed by maximizing efforts to contact establishments that were initially selected for interview. Attempts were made to contact the establishment for interview at different times/days of the week before a replacement establishment (with similar strata characteristics) was suggested for interview. Survey non-response did occur but substitutions were made in order to potentially achieve strata-specific goals.