6 May 2026

Indian construction materials and technologies for Russia: niches and opportunities

6 May 2026

6 minutes

What categories are in demand in Russia? How can Indian companies establish a position in the market for building materials?

The Russian construction market remains large and has steady demand, despite the restructuring of supply chains. As a result, there is a window of opportunity for new suppliers, including Indian companies, in those segments that are still dependent on imports and that have growing requirements for technologies and services.

The Russian construction market: scale, structure and drivers of demand

Construction volume and the role of residential real-estate

The Russian construction market remains one of the largest in Eurasia. In 2025, the market volume of work stood at RUB 18.8 trillion, with the commissioning of 108.1 million m² of new housing, while construction of individual housing projects reached 63.5 million m² (58.8%). Market demand is also supported by infrastructure projects, which creates a steady flow of demand for materials. Amid an increasing focus on import substitution, there are still niches that are dependent on external suppliers, and the role of alternative suppliers is growing in importance.

Russia construction market revenue, 2024–2030 (USD billion)

Source: Next Move Strategy Consulting

Production localisation and continued import dependence

For primary materials, the level of localisation exceeds 90–95% (cement, aerated concrete, and dry mixes); however, there is still a dependence on import in a number of segments. Logistics form up to 30–50% of project costs, a factor which increases the importance of selecting the right suppliers. The share of construction materials supplies from India in September 2025 stood at around 0.5% of exports, but is growing in the segments of finishing materials and engineering solutions.

Construction market trends in 2026

Building information modelling (BIM) is becoming the industry standard; it is mandatory in shared-equity construction at the stage of building and installation works.
Residential housing accounts for more than half of the input volume, and this share is growing.
Quality control is being strengthened. The register of bona fide manufacturers now stands at more than 600 companies, along with two-level verification (in laboratories and at construction sites), digital labelling with QR codes and selection according to 10 criteria across 28 categories.
Prefab (factory production of construction elements with on-site assembly) is developing. In Russia, this accounts for around 6% of the market and is demonstrating rapid growth. In India, it accounts for $8.8–15 billion, with projected growth to $15.9–23 billion by 2030 (9–15% per year). The combination of prefab elements with digital building modelling enables a 50% reduction in construction time. Modular solutions are already being rolled out at scale across the industry. The IHS-One (Aap Ka Awas) system, listed as a promising technology by the Indian Building Materials and Technology Promotion Council and used in the GHTC program, has been applied in the construction of more than 50,000 homes in Andhra Pradesh alone.
The construction of energy-efficient and smart buildings is also developing, including prefab facilities with monitoring and management systems, in projects such as Technopark.
The demand for integrated solutions is growing, with the supply of materials increasingly accompanied by design and digital models.

India as a supplier of building materials: current position and growth potential

Export base and competitive advantages of Indian manufacturers

India still supplies building materials to Russia on a spot basis, but it is one among a pool of alternative suppliers, alongside Turkey, China, Belarus, Vietnam and Iran. However, India is strengthening its position, primarily in construction chemicals and additives. The foundation of this is India’s large-scale export base:

cement production—with plans to increase production capacity by 150–160 million tonnes by fiscal year 2028
exports of engineering products—which are forecast to grow to USD 300 billion by 2030
ceramic tile exports, which have the potential to grow to USD 15.84 billion by 2030

Shipments to Russia reached USD 4.84 billion, with an overall growing trade turnover that reached USD 68.7 billion in the 2024–2025 fiscal year.

Role of engineering services and R&D in supply

The fastest growing areas of supply are

engineering products
construction chemicals and additives
ceramics and plumbing

An additional factor impacting this mix is growing exports of services, including in engineering and R&D, which enables the supply of solutions with engineering support (design, BIM and technical control).

Transition to integrated solutions: from materials to EPC and BIM

Indian companies are gradually moving towards the supply of digital and engineering solutions, using BIM platforms to model structures and assemblies ahead of delivery, which reduces errors and speeds up installation. Major Indian contractors, including Larsen & Toubro and Tata Projects, operate using the EPC (Engineering, Procurement, Construction) model, in which the contractor performs a full cycle of work from the design, including digital modelling, through the construction stage and lifecycle management. The approach is already being applied in infrastructure projects, from transport corridors to energy infrastructure, which is being exported along with materials as an integrated solution.

Rising adoption of BIM in India’s construction market

Source: topbimcompany.com

Sber’s expert support for business relations between India and Russia assists companies, from simple money transfers to consultation and Russian market expertise

Promising categories for suppliers: where demand for imports remains

Finishing materials, plumbing, and construction chemicals

The most promising categories that have a steady dependence on imports are finishing materials, plumbing, construction chemicals and engineering systems. The share of imports in the market for finishing materials stands at 20–40%, while imports of plumbing products stand at around 44 million units, compared with 27.8 million units produced, with more than 90% of faucets imported. In construction chemicals, dependence in complex segments stands at 40–60%, and as much as 80% in some areas.

Engineering systems and components

In engineering categories, imports account for 30–50%. For example, imports of pipework fittings stand at around $1.05 billion, which is equivalent to 46% of the market, while imported fasteners account for around 50% of consumption, with up to 78% of supplies coming from China. Import dependence remains even in partially localised segments, such as door fittings.

Ceramics as an entry point into the market

Ceramics has already become an entry point, with Indian suppliers accessing the market through distributors and local infrastructure. Neodom presented Indian porcelain stoneware at MosBuild 2025, while A-Ceramica is developing production in India and a warehouse network in Russia.

Meanwhile, a number of manufacturers such as Somany Ceramics and Kajaria use digital product catalogues and libraries for BIM to work with developers, including materials directly into design models, which shortens the selection cycle and increases the likelihood of products being included in project specifications at an early stage.

Digitalisation of construction: new requirements for suppliers

BIM commitments and the spread of technologies

The Russian market is rapidly moving towards digital construction. Information modelling technologies, or BIM, are used by 44% of developers in 80 regions of Russia. Since 2024, their use has been mandatory in the design stage, and, since 2025, at the construction stage, shifting demand away from individual materials toward solutions compatible with digital models and BIM requirements.

The Asia-Pacific region is the fastest growing in this area, while India is one of the leading export centres for digital modelling services. In addition, BIM is increasingly being complemented by 4D/5D modelling technologies that consider deadlines and prices, enabling the visualisation of work sequences and the optimisation of construction schedules. This approach has been adopted in major infrastructure projects in India, including the construction of the Ahmedabad—Mumbai high-speed railway, where digital models and prefab elements are used to accelerate implementation in difficult conditions and tight deadlines.

Digitalisation of building materials supplies: BIM, data and project integration

The core model becomes a chain of product, digital content and engineering support. In addition to the supply of materials, BIM families, specifications and parameters are required for inclusion into models, as well as support, including unit calculations, instructions, training and quality control. India has a strong foundation in this area. Exports of engineering products stand at USD 116.7 billion, with service exports of USD 387.5 billion, including in engineering and R&D.

Demand is growing for applied digital solutions: BIM integration with procurement and logistics, digital catalogues and construction management systems for planning, timing control and accounting. This requires suppliers to provide not only products, but also data: models, specifications and digital passports.

How Indian companies can enter the Russian market

Focus on key categories with a high share of imports, such as faucets, fasteners, certain construction chemical industry segments and engineering systems.
Incorporate certifications and proven quality into product offerings, using Russian testing, protocols, product passport specification data and batch traceability.
Build a local distribution network, including through warehousing, service provision and a dealer network, as well as by using industry B2B platforms such as MosBuild to find partners and test demand.
Deliver products in conjunction with services, using BIM models, specifications, and technical support for design projects and installation, as well as training for contractors.
Establish settlements and contracts using national currencies through trade finance tools and guarantees.