Challenges facing by the infrastructure companies in India

 Lack of skilled workforce

The construction industry offers a lot of opportunity for employment but most of it is restricted
to manual jobs. Due to the low wage expectancy of workers, who mainly come from the rural
areas in search of work, contractors still follow traditional work practices. This doesn’t just
reduce the efficiency of the process but also makes it a lot risky. As many as 70% contractors
believe that there is lack of skilled workforce and qualified/certified professionals.
 Non-availability of land within city limits
Though the demand for housing and commercial projects in the cities has been increasing,
supply is highly limited due to non-availability of land and the rising costs. This makes most
construction projects non-feasible and the implications fall both on the contractors and the
buyers. Material prices too have increased over the past few years and building high-quality
properties with the right technology and materials has become a very costly affair – something
that doesn’t attract the general buyer.
 Alleviated cost of materials
The cost of construction materials, especially after the implementation of GST (Goods and
Service Tax) has undergone changes. Most materials used in the construction industry,
especially those in the high-end category fall in the 28% GST slab. This has grown up to be a
big challenge for all stakeholders.
 Technology Adoption
Technology has been a big differentiator in the construction industry today. This is especially
pressing with international investors pouring into India. Technologically efficient builders are
attracting collaborations in the higher end and businesses that follow traditional means are
falling behind. Elements like Virtual Reality, AI security, and BIM are transforming the trends
today, both in the commercial and housing sector. It is necessary that all competitors start
getting technologically efficient to live up to the challenge of technology.
 Project Complexity
Modern construction projects are getting more demanding, both in terms of design and
functionality. The challenge is alleviated by the lack of skilled labor and latest technology with
most investors. Firms consequently are getting selective into what projects they will be able to
accept. A report by Accenture suggests that only 30% of firms have been able to deliver
projects in the agreed budget and 15% on the agreed time.
 Power
The government too plays a pivotal role in guiding the construction industry in India. Being
the policy-making body, it rests upon the current government in power as to whether the current
policies are in favor or against the general acceptance of the industry.
 Environmental sustainability
The construction industry is responsible for 25-40% of the carbon emissions on a global scale.
In the Indian perspective, this is even more pressing as traditional means of manufacturing and
construction is a large part of the process even today. Climate change and environment is a
global agenda and governments across the world are pushing towards environmentally
sustainable practices. New norms and regulations require companies to become more
technology advanced and acquire skilled manpower. Caring about the environment is no more
just a social obligation but a legal requirement.
 Natural Hazards
Being a tropical nation, India is prone to a lot of climatic disasters, especially floods that
happened every year. Big cities like Mumbai and Chennai have been under havoc continuously
in the past years and this has been a huge challenge for the construction industry. However,
this might be the only challenge that the industry will continue to live with while building ways
into more sustainable and safer building practices.