Last edited 06 Jan 2021

Indian construction industry

East West Metro Tunnel1.jpg
East West underground railway connection between Calcutta (Kolkata) and Howrah.

Construction is the second largest industry in India after agriculture. It is expected to become the largest employer in India by 2022 and the third largest construction industry in the world by 2025, behind only China and America.

Its sectors are categorised as:

The construction industry in India is highly fragmented, with a small number of large companies working across all sectors, a larger number of medium-sized specialist companies, and a large number of and small and medium sized subcontractors. Just 10% of the workforce are categorised as skilled, whilst 90% are unskilled or semi-skilled.

During the middle of the 20th century, the government was main developer, with construction work carried out by state-owned enterprises. Since then there has been significant commercialisation of the sector, and recently, there has been a focus on public-private partnerships to accelerate the development needed to support the urbanisation of the population. In addition, rules on foreign direct investment have been relaxed to help deliver the significant levels of housing and infrastructure required.

However, the growth of the sector has been accompanied by a number of problems.

A number of government policies have been introduced to facilitate the development needed and to encourage the adoption of innovation, modern methods of construction, and digital infrastructure:

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