India’s construction sector continues to expand rapidly, driven by sustained infrastructure spending, the energy transition and growing investments in digital infrastructure, according to India insights from the 2026 Global Construction Insurance and Surety Market Report released by Aon.
The report said rising project pipelines and increasing asset values are creating a more complex operating environment, prompting insurers to place greater emphasis on natural catastrophe exposure, project governance and project delay risks. Large-scale infrastructure development, urbanisation and investments in high-tech manufacturing are driving demand for construction insurance, while growing insurer capacity and improved reinsurance conditions are supporting market growth.
SushantSarin, Head of Strategy and Commercial Risk in India for Aon, said India remains one of the fastest-growing construction markets in the Asia-Pacific region. He noted that large projects face risks from floods, earthquakes and other natural hazards, making strong project governance, transparent data and realistic delay assumptions essential for managing costs and risks.
The report identified technology-led projects such as data centres, semiconductor plants and advanced manufacturing facilities as major growth areas. These projects require significant power capacity and involve complex risk profiles, increasing demand for specialised insurance solutions.
Aon also highlighted climate-related threats, including extreme heat and flooding, which can disrupt power, transport and logistics networks, delaying construction and affecting long-term asset performance. The report further noted steady growth in India’s surety market, with surety increasingly emerging as an alternative to traditional bank guarantees for infrastructure projects.