Challenges Faced By Construction Companies in India


Posted By:Infra Bazaar

The construction industry is the second largest industry of the country after agriculture. It makes a significant contribution to the national economy and provides employment to large number of people. The use of various new technologies and deployment of project management strategies has made it possible to undertake projects of mega scale. In its path of advancement, the industry has to overcome a number of challenges. However, the industry is still faced with some major challenges, including housing, disaster resistant construction, water management and mass transportation.


 New mega-project undertaken, involvement of international consultants, and participation of Indian consultants/contractors in international projects has led to infusion of new materials, equipment and technologies in the construction practices in India. The manufacturing of new equipment is constrained by large capital investments and the uncertain markets.

Even materials required need lot of research and need to be as per global standards. Corrosion Resistant Steel, Closed Structurals, Pre-engineered Buildings, Engineered Steel Guardrail Systems, Urban Construction Strategies and Machine Automated Slip-form Pavers are some of the challenges ahead as India lacks the knowhow of usage and there is no or negligible research undertaken in these areas.


The main factors that influence the selection of sites for megaprojects are availability of distribution or transmission lines of electricity, availability of raw material sources and availability of transmission facilities like roads, rail, airport and waterways.

Multiple basic infrastructure support is needed for the development of any mega-project. These supports should be developed in parallel with the project itself as the project progresses. The major points to be kept in mind for development of basic infrastructure are water supply, power supply, roads and hospitals, entertainment and shopping facilities.


There are three categories of manpower involved in this industry consisting of the artisan level, the supervisory level and managerial level. It has been observed that every Rs.1 Crore, investment on construction project, generates employments of 22,000 unskilled man-days, 23,000 skilled or semiskilled man-days and 9,000 managerial and technical man-days approximately. With only 3% of total teaching in the country addressing the direct needs of the construction engineering and management aspects require a lot of attention and aggressive teaching methodologies need to be adapted in our country.


In the years ahead, the construction industry in India has to overcome various challenges - be it with respect to housing, environment, transportation, power or natural hazards. Technocrats associated with the Indian construction industry need to employ innovative technologies and skilled project handling strategies to overcome these challenges. The gains of large investments in the mega-projects eventually will give it back to the construction industry itself in the form of better economy and improved work conditions.

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