Opportunities in the Indian Construction Industry

The decision of the Indian Government early last year to liberalise regulations governing foreign investment in India's construction and real estate market has been one of the most significant policy shifts to come out of New Delhi during the last ten years. This is no small feat given that during the decade there has been a succession of reform programmes across the Indian economy. So why are the construction reforms so important?

Construction activity in India is worth $50 billion per annum and accounts for around 6% of Indian GDP. The construction sector in India employs around 40 million people. However the Indian construction process has traditionally been characterised by bureaucracy, red tape and erratically enforced regulations. Time and cost overruns are prevalent in the industry. Years of government monopoly over construction have meant that management and performance standards are often out-moded. The contracting workforce is largely informal and untrained, consisting