One of the greatest contributors to the GDP of India is the construction industry. The sector includes a wide range of activities, from residential and commercial structures to infrastructure development, and has witnessed considerable growth due to numerous factors such as population growth, rapid urbanization, increasing infrastructure requirements etc. The sector roughly contributes 9% to the GDP of the country. India stands as one of the world’s leading exporters and importers of construction materials. The growing demand for modern, aesthetically appealing, and sustainable building products is transforming the country’s construction materials market, leading to a significant rise in import volumes. Data indicates that India primarily exports construction materials to the United Kingdom, the United States, and Vietnam, while major imports originate from South Korea, China, and the United States. Although a large portion of construction materials is locally sourced, the energy required for their production and consumption is largely met through coal and petroleum products imported from oil-rich nations. The Indian construction equipment market was valued at approximately USD 7.3 billion in 2024 and is projected to surpass USD 10.9 billion by 2029. More than 100,000 units of internal and global trade were done in the year 2024. The facts mentioned above show the significance of global trade in the construction industry and the impact it has on the country’s economy. This study analyses and understands the impact of a select few current geopolitical scenario on the supply chains of construction materials, oil, and construction machinery, and its effect on the building materials and construction industry in India.

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Impact of Geopolitics in the Trade of Construction Materials and Machinery

  • Eesha Vinod,
  • B. S. Shashank

摘要

One of the greatest contributors to the GDP of India is the construction industry. The sector includes a wide range of activities, from residential and commercial structures to infrastructure development, and has witnessed considerable growth due to numerous factors such as population growth, rapid urbanization, increasing infrastructure requirements etc. The sector roughly contributes 9% to the GDP of the country. India stands as one of the world’s leading exporters and importers of construction materials. The growing demand for modern, aesthetically appealing, and sustainable building products is transforming the country’s construction materials market, leading to a significant rise in import volumes. Data indicates that India primarily exports construction materials to the United Kingdom, the United States, and Vietnam, while major imports originate from South Korea, China, and the United States. Although a large portion of construction materials is locally sourced, the energy required for their production and consumption is largely met through coal and petroleum products imported from oil-rich nations. The Indian construction equipment market was valued at approximately USD 7.3 billion in 2024 and is projected to surpass USD 10.9 billion by 2029. More than 100,000 units of internal and global trade were done in the year 2024. The facts mentioned above show the significance of global trade in the construction industry and the impact it has on the country’s economy. This study analyses and understands the impact of a select few current geopolitical scenario on the supply chains of construction materials, oil, and construction machinery, and its effect on the building materials and construction industry in India.