Construction Marketing in India
Market Entry to India > Construction Marketing in India
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A management consultancy firm advising American companies how to increase revenues and reduce costs by leveraging the economies of China and India.
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India's construction industry contributes 5 percent of the nation's gross national product, and is growing approximately at 15-20 percent per year. Private sector investment in industry and housing, and government investment in India's infrastructure are the growth drivers.
The Tenth Five Year Plan of the Government of India estimated a shortage of 22.4 million dwelling units. Thus, 80 - 90 million housing units will have to be constructed. The investment required for constructing these and related infrastructure during this period will be $600 billion to $800 billion at roughly $30 billion to $40 billion per year. The growth trends in the retail, entertainment, information technology and business process outsourcing sectors have corresponded to a growing demand for shopping malls, multiplexes, food outlets, office spaces, convention and business centers.
India requires new infrastructure investments of USD one trillion, and there is still a gap of 25-30 percent that can be filled by U.S. companies. The Indian market for construction equipment and services has been growing steadily as projects continue to be implemented in several infrastructure industries. This trend is likely to continue as more and more projects get implemented. The most promising areas of growth are power, oil & gas, ports, roads, civil aviation, urban infrastructure, and housing.
The construction industry in India has four broad segments: civil, infrastructure, housing and industrial projects. The growing construction activity in India is likely to produce increased imports for U.S. construction equipment and services. Partnerships with foreign and U.S. firms will continue to be sought by Indian architectural, engineering, and construction firms for large-scale projects, either through joint ventures or in consortia, in an effort to obtain highly needed expertise to implement specialized contracts.
India's leading companies and well-run government corporations have shown a marked preference for U.S. construction services. Several projects such as transportation bridges, refineries, and industrial plants executed by the many U.S. companies operating in this market have become showcases for plant design. Their level of expertise is raising the standard for project design, construction, management, and supervision.
The potential for Western firms lies in highly specialized contracts for designing, developing industrial infrastructure, setting up training institutes, and conducting construction supervision, areas in which local firms have limited experience. In addition, there are opportunities to supply construction services to India's chemical, electrical/electronic, mechanical engineering and environmental sectors.
Our Services
Amritt’s go-to-market service for India helps with developing and executing roadmaps to expand your presence:
• Feasibility Studies & Financial Analysis
• Construction code compliance
• Facilitating bids for contracts from government and private sectors
• Qualifying high quality in-market suppliers
• Foreign Direct Investment policy compliance
• Negotiation with Indian counterparts
• Attracting and retaining top engineer and business development talent
• Avoiding cultural gaffes
