As India aspires to become a developed nation by 2047, infrastructure will play a defining role in driving this transformation. The scale and speed of development required are unprecedented and with that comes a pressing question: how do we build smarter, faster and more sustainably? This is where prefabricated (prefab) construction is stepping in – not just as an alternative but as a strategic enabler of India’s future. The opportunity ahead is immense. India’s infrastructure market is projected to reach USD323 billion by 2029, growing at a CAGR of 10 per cent.1 While prefab currently accounts for only 1–2 per cent of this market, its growth trajectory is promising.2 The segment is expected to double to USD5.47 billion by 2030, driven by the urgent need for scalable and efficient construction solutions.3
Modern methods for India’s urban needs
India’s urban population is rising exponentially, placing immense pressure on housing, transportation and public utilities. At the same time, more than 40 per cent of infrastructure projects are delayed, highlighting the limitations of traditional construction methods.4 To bridge this gap, prefab can be a viable solution. It offers significant advantages in terms of speed, resource efficiency and design resilience. For instance, prefab solutions can reduce build time by 30–50 per cent5, cut resource consumption by 20 per cent and deliver higher-grade, durable structures.6 These benefits make prefab particularly suitable for a wide range of applications, including mass housing, public infrastructure and green commercial buildings.
In mass housing, prefab enables rapid deployment of affordable homes with consistent quality, helping meet the growing demand in urban and semi-urban areas. In public infrastructure, it supports faster construction of essential facilities such as schools, hospitals and transport hubs. In commercial buildings, prefab is being used to create energy-efficient, sustainable spaces that align with India’s green building goals.
While there are several advantages, prefab construction faces challenges in India. For instance, adoption remains limited, often due to resistance from traditional developers who are accustomed to conventional methods. Concerns around design flexibility also persist, although modern prefab technologies are increasingly addressing these issues with modular and customisable solutions.
The road ahead
To make prefab a mainstream choice, India can take strategic measures to build a supportive ecosystem. This includes a robust supply chain that ensures timely availability of materials and components, an upskilled workforce trained in prefab techniques and greater clarity in regulatory norms to streamline approvals and encourage innovation. Policy support and industry collaboration will be crucial in overcoming these barriers and unlocking the full potential of prefab construction. As the country accelerates its infrastructure journey, prefab offers a powerful solution to build not only faster but also smarter and more sustainably. It aligns with India’s development goals, offering a way to overcome delays, reduce costs and improve quality across projects.
The next decade will be pivotal. With the right investments in technology, talent and policy frameworks, prefab can move from the margins to the mainstream. As we look ahead to 2047, embracing prefab construction could be a transformative step in India’s journey towards becoming a developed nation.
[1] India infrastructure sector: Market share analysis, industry trends and statistics, growth forecasts (2024 - 2029), Research and Markets, July 2024, accessed on 22 September 2025
[2] India prefabricated buildings market size and competitors, Research and Markets, May 2025, accessed on 22 September 2025
[3] India prefabricated buildings industry report 2025, Research and Markets, 12 March 2025, accessed on 22 September 2025
[4] India’s INR5 trillion infrastructure burden needs urgent concession reforms, Construction World, 3 April 2025, accessed on 22 September 2025
[5] The rise of prefabricated steel construction: Transforming India's infrastructure landscape, Construction Times, 21 April 2025, accessed on 22 September 2025
[6] Prefab construction reshapes real estate, 1 August 2025, accessed on 22 September 2025
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