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Construction sector

In a developing country like India, infrastructure plays a vital role for easy import and export of goods and commodities. India lacks good infrastructure and the prime reason being lack of skilled labours, delayed clearances from environmental and other boards for the projects.

So Indian government has decided to focus more on infrastructure development now and has decided to hasten the road construction to 30km/day from 3 km/day in 2 years. Also it has taken loan from Asian development bank for enhancing railways.Also coming up with FDI in railways in the current budget to fasten the railway network. It is spending 95.6 billion rupees to enhance railway network and also to introduce high speed trains, India has given contract to SAIL for providing steel for the same.

The budget has also emphasised on affordable housing, development of 100 smart cities, constructing airport in tier1 and tier2 cities with public-private partnership. Also it has decided to setup Infrastructure Development Trust to have a single window clearance system to fasten the clearance for the projects so that infrastructure players are not hurt as it was before.

However lack of skilled labours and rigid labour laws has been an impediment for the development. For instance, projects developed by NREGA like construction of canals, channels because of faulty construction are getting spoiled soon and the same project is being done again and again . Also in the case of road, there is a growth of only 4.3% over the period all though freight traffics is increasing by 11.3% over the period.

Also port handles more than 90% of nation’s trade by weight. We have 13 major and 120 non-major ports. However because of poor maintenance like poor dredging, inefficient loading and unloading the containers in the ships is leading to clogging of ships and leads to waste of time and money. All these are because of unskilled labours.

So to mitigate this, India is planning to spend 80 billion rupees for skill development and vocational programs. We already have some programs like DGE&T in Ministry of Labour( specialised modular on Improvement of physical infrastructure facilities like buildings, equipment), Constructions skills development council(Train skills required, test their skills and then will be sent back to the contractor), CIDC under Planning Commission of India has developed Construction Workers Training Programme and Employee Development Programme to enhance the skills of labours, CPWD regional training centre(Impart skill improvement training to workers. The skill development courses for workers are conducted in associated with “Construction Industry Development Council”.

So there is a high scope for employment opportunity. Only 4.3% of unemployed people gets some vocational training. It is very well evident that proper coverage of these unemployed people and unskilled labours would enable more robust infrastructure development and unemployment alleviation.


By : Venkatesh K.G

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