Site Administration and
Control
Importance of Construction and Construction
Industry, Indian Construction Industry Landscape
Jeetu Soneji
Assistant Professor | School of Construction
Learning Objectives
• Understand the significance of the construction industry in economic and
social development.
• Explore the landscape, scale, and trends of the construction sector in
India.
• Analyze challenges, opportunities, and future growth in the Indian
context.
• Connect industry developments with career opportunities and
sustainability.
| Jeetu Soneji | Assistant Professor
Introduction: Why Construction Matters?
• Role of construction in shaping societies
• Impact on Quality of Life and community well-being
| Jeetu Soneji | Assistant Professor
Overview of Construction Industry
• Construction is the oldest and one of the largest industries in the world.
• It’s Market size of about ten trillion US dollars.
• Construction is traditionally a contracting business right from the good
old days, the industry comprises of a very large number of small firms.
• Now the construction industry is one of the largest industries in any
economy.
• It makes a significant contribution to the national economy and provides
employment to a large number of people
| Jeetu Soneji | Assistant Professor
| Jeetu Soneji | Assistant Professor
Global Cement and Steel Consumption
[Link]
| Jeetu Soneji | Assistant Professor approach-to-low-carbon-concrete/
Construction Sector – Global Scenario
| Jeetu Soneji | Assistant Professor
C0nstruction vs other sectors (2015-2030)
| Jeetu Soneji | Assistant Professor
Global Construction Output by Region
| Jeetu Soneji | Assistant Professor
Growth in Infrastructure Construction - Countries
| Jeetu Soneji | Assistant Professor
Infrastructure Ranking - Global
| Jeetu Soneji | Assistant Professor
Population and Construction Growth
| Jeetu Soneji | Assistant Professor
Long Term Population and Construction Growth
| Jeetu Soneji | Assistant Professor
Introduction to the Indian Construction Sector
–9% share of India’s GDP
–51 million active employees
–Expected to reach $1.4 Tn by 2025
–Expected CAGR of 8.8% (2025-2029)
–250 sub-sectors with linkages across
sectors
–The Real Estate Industry in India is
expected to reach $1 Tn by 2030
[Link]
| Jeetu Soneji | Assistant Professor
Government Initiatives
• Major budget allocations for transport (INR 2.9 trillion), railways (INR 2.6
trillion), and rural housing through Pradhan Mantri Awaas Yojana (aiming
for 49.5 million homes by 2029).
• Urban development schemes like PMAY-U for affordable city housing
| Jeetu Soneji | Assistant Professor
GDP from Construction in India
[Link]
| Jeetu Soneji | Assistant Professor
The Indian Construction Industry - Scenario
• Cities Driving Growth - Urban population to contribute 75% of GDP (63% present), and 68 cities
will have a population of more than 1 million
• Residential- By 2030, more than 40% of the population is expected to live in urban India (33%
today), creating a demand for 25 Mn additional mid-end and affordable units.
• National Infrastructure Pipeline (NIP) - India has an investment budget of $1.4 Tn on
infrastructure
– 24% on renewable energy
– 19% on roads & highways
– 16% on urban infrastructure
– 13% on railways
| Jeetu Soneji | Assistant Professor
Importance of Indian Construction Industry
• Job Creation
• Economic Growth
• Infrastructure Development
• Real Estate and Housing
• Foreign Investment and FDI
• Urbanization and Smart Cities
• Sustainable Development
• Export Opportunities
| Jeetu Soneji | Assistant Professor
| Jeetu Soneji | Assistant Professor
| Jeetu Soneji | Assistant Professor
Industrial and Transport Infrastructure
| Jeetu Soneji | Assistant Professor
| Jeetu Soneji | Assistant Professor
| Jeetu Soneji | Assistant Professor
| Jeetu Soneji | Assistant Professor
Promising Days ahead for India
“India will move rapidly up the Global Construction
Perspectives/Oxford Economics global construction rankings,
overtaking Japan to become the world’s third largest
construction market by 2030.”
“India needs to build 31,000 new houses a day over the next 15-
years to meet the needs of its rapidly growing and
urbanising population”
- Global Construction 2030 (Oxford Economics)
| Jeetu Soneji | Assistant Professor
Challenges for Indian Construction Sector
• The overall quality of India’s infrastructure ranked 70 out of 141 countries by the World
Economic Forum.
• The quality of electricity infrastructure in India is ranked as 103 out of 144 countries.
• India is also ranked 130 for ease of doing business.
– Compared to China ranked at 84 and Russia ranked at 51, according to the latest World Bank Group
league tables.
• Significant levels of indebtedness within India’s infrastructure sector.
– financially stressed PPP infrastructure assets
– stalled infrastructure projects
– domestic banking sector lacking the financial firepower and expertise on infrastructure
| Jeetu Soneji | Assistant Professor
Challenges and Opportunities
• Regulatory and bureaucratic hurdles
• Skilled labour shortage
• Sustainability and environmental concerns
• Infrastructure financing
• Safety and quality control
| Jeetu Soneji | Assistant Professor
Features of Industry
• Complexity
• Uniqueness
• Mobility of Facilities
• Multiplicity of Agencies
• Ad-hoc Labour Force
• Conglomerate of Contractors
• Stakeholders in Construction Work
• Complex Inter-Relationships & Interactions
• Lack of Organizational Setup
• Safety Hazards
• Labour Quality
• Productivity
| Jeetu Soneji | Assistant Professor
Assignment
• Write a reflection on how better construction can improve your
community.
| Jeetu Soneji | Assistant Professor
Thank You!
Contact me
at
jsoneji@[Link]
+91-99210 68050
| Jeetu Soneji | Assistant Professor