As India moves closer to the Union Budget 2026, the construction and building materials sector remains firmly at the centre of the country’s growth agenda. With India continuing as the fastest-growing major economy, strong domestic demand and sustained public capital expenditure are expected to keep infrastructure and real estate activity resilient. The construction sector, contributing nearly 18% to India’s Gross Value Added (GVA), is not only a key economic driver but also a significant source of employment across urban and rural markets.
Government-led investments in infrastructure, housing, urban development, and connectivity have provided long-term visibility to the sector. Going into the next fiscal year, GDP growth of 6.5–7% and construction growth of 8–10% are expected, driven primarily by continued public capex and a gradual revival in private investment. For building material manufacturers, this translates into steady demand across housing, commercial, and infrastructure projects.
Ahead of the Budget, the industry is looking for measures that go beyond allocations. Policy continuity, stable energy costs, and streamlined taxation are critical to managing input costs and ensuring price stability. Equally important is a focused push toward sustainable and high-performance construction materials. Incentives for green buildings, energy-efficient construction practices, and the use of environmentally responsible materials can accelerate the sector’s transition toward sustainability while improving build quality and durability.
Sharing a pre-Budget perspective, Kaushal Mehta, Managing Director, Walplast Pvt. Ltd., said, “The upcoming Union Budget is an opportunity to further strengthen India’s construction ecosystem. Continued emphasis on infrastructure and housing, combined with policy stability and support for sustainable building materials, will be crucial. Such measures will encourage innovation, capacity expansion, and wider adoption of advanced construction solutions, enabling the industry to support India’s long-term growth aspirations.”
As expectations build ahead of Budget 2026, a balanced approach that supports infrastructure creation, sustainability, and ease of doing business will be key to reinforcing the construction and building materials sector as a cornerstone of India’s economic growth story.
