India is poised for a $2 trillion boost by 2030, driven by 18 high-growth sectors identified by McKinsey, with urban construction emerging as a key revenue-generating sector. The report, "India's Future Arenas: Engines of Growth and Dynamism," projects that urban construction alone could generate $400-490 billion in revenues by 2030, becoming the largest contributor among these transformative sectors.
These 18 sectors, including renewables, travel & tourism, auto components, and urban construction, are expected to collectively account for $1.7-2 trillion in revenue by 2030. The McKinsey report highlights that these sectors could contribute to around 30% of India's incremental GDP by 2040, propelling the country toward its vision of becoming a developed economy by 2047. In 2023, these sectors already generated $690 billion in revenue, showing their significant potential for growth.
Urban construction is at the forefront of this expansion, with its growth expected to play a critical role in India's economic development. The government's focus on infrastructure development, urbanization, and smart city initiatives will further boost the sector. Key drivers such as renewable energy integration, sustainable building practices, and modernization of infrastructure will contribute to this growth.
In addition to urban construction, other transformative sectors, such as electric vehicles, aerospace and defense, semiconductors, and medical devices, are also expected to see significant revenue increases. McKinsey's managing partner for India, Rajat Dhawan, noted that these sectors, while difficult to predict precisely, hold the potential to propel India toward global economic leadership.
As India continues to invest in its infrastructure and urban development, the construction sector remains central to its long-term economic vision, representing a significant opportunity for growth and innovation.