07/01/2020 - Indian Economy

IAS Parliament 5 years

KEY POINTS

· India will contribute about $640 billion to this, aided of course by government initiatives in infrastructure development and affordable housing for all.

· While it has seen its ups and downs, the sector continues to be a steady contributor to India’s GDP and employment growth for several decades now.

New Technology

· Although construction may not have the profitability levels of financial services, several start-ups have discovered its potential.

· The construction industry is reportedly the largest buyer for commercial drones today. Robots are working with humans, eliminating repetitive and potentially dangerous activities.

· The digital and other advanced technologies are making old business models obsolete.

Human resources

· Construction managers in India complain about the difficulty of getting enough quality workers. Many skilled workers have fled to greener pastures like the Middle-Eastern Gulf.

· With those economies in slowdown mode, the sector is caught in labour market headwinds. Many young people don’t think of construction as an attractive option.

· And those who are trying to enter the industry often don’t have the skills that customers require, such as the ability to operate specialised machinery.

· The industry is thus resorting to some non-traditional practices to recruit and retain skilled talent. From offering higher pay and benefits to hiring full-time employees (rather than contractors), incentives to improve these jobs have been created.

· The gender gap in construction is stunning — women represent less than 10 per cent of the total construction-related workforce.

Changes in business models

· Standardise and empower employees so that they can work on similar tasks in multiple locations and substitute for one another quickly.

· Cross-train employees to create more value for all stakeholders by way of new skills and better prospects.