New Delhi, July 27 -- Construction sector in India is expected to grow by 7.0-7.5 per cent in the financial year 2026, according to rating agency ICRA.

This comes after nearly a decade of steady growth, with the sector expanding at an average rate of 6.9 per cent per year between 2016 and 2025.

The credit rating agency reaffirmed a stable outlook for India's construction sector for FY2026, supported by a healthy pipeline of infrastructure projects, strong order book visibility, and continued public capex.

However, persistent competitive intensity and delays in project execution are likely to cap profitability growth, even as revenue recovery is expected from FY2025 lows.

Revenue growth, however, has been revised downward to 6-8 per ce...