Indian Construction Sector Facing Acute Labour Shortage: Assocham Survey..!


The Indian construction sector is facing acute labour shortage due to social schemes like JNNURM & NREGA, leading to delay in infrastructure projects and hampering the growth of the sector, Assocham recently said.

Highlights of Assocham Survey..!

* Market size of India's construction sector might not even reach Rs. 30,000 crore mark by 2015 from the current level of nearly  Rs. 21,000 crore as the labour intensive sector has been constantly grappling with the shortage of workforce..

* Due to central government social schemes such as JNNURM & NREGA, a large number of construction projects are lagging behind their completion schedule mainly because of acute labour shortage.

* The growth of the Indian construction Industry has gradually declined from nearly 30% in 2007 to about 12% currently.

* Besides labour shortage, slowdown in capital investments, continuing economic downturn & lackluster performance of realty sector are the other problems being faced by the construction sector. .

* Many industry players like builders / promoters / developers have blamed central government social schemes for locally generating jobs leading to continuous depletion of migratory workforce from the construction sector.

* Paucity of man-power in the sector has shot up the cost of construction labour by above 25% .

Pre-fabricated Buildings..!

* Further, Assocham has called for introduction of technology like pre-fabricated buildings, brick less technology to aid faster construction and counter the labour crunch faced by the industry.

* Domestic construction companies need to invest heavily in technology to reduce construction costs, thereby providing additional benefits to the customers & spurt demand

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