India set to become the third largest construction market globally by 2025

Construction : According to the latest joint report by KPMG and real estate developer, NAREDCO, India is well on her way to becoming the world’s third largest construction market by 2030, at the latest. Currently behind the USA, China and Japan, India is set to overtake Japan in the next couple of years. The report states that this sector will be the largest employer in the country, providing jobs to more than 70 million people.

With the population of the country increasing at an alarming rate every year, it is expected to be at 40% of the present by the year 2030. This implies that around 100 million houses will be needed by at least 2023 to provide shelter for all citizens of the nation.

indian construction industry

Along with houses, there are a number of other projects lined up for the upcoming years. There are close to 400 projects worth more than ₹6.5 trillion for roads, more than 400 projects worth ₹6 trillion in railways, 70 projects worth ₹670 billion for the development of airports and 75 projects worth ₹551 billion for the ports sector.

As in any project of this magnitude, there are a number of hindrances in the way. Issues like limited funding from banks and lack of long term funding are in the lead. Another major problem is the lack of reaping cutting-edge and advanced technology like robotics and data analytics for estimating, bidding and performance monitoring  despite the substantial investment devoted to it.

In spite of all the obstacles, the report states that the authorities, keeping the long-term goals in mind, are hopeful that this would be achieved.

Author: Richa Ambatipudi

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