Urban Housing Demand Spurs Job Growth In Indian Construction

India’s robust construction industry is set for further growth, potentially generating an additional 30 million jobs by March 2030, supplementing the existing 70 million workforce. This expansion is primarily attributed to escalating urban housing needs and government investments in infrastructure development like roads. The resurgence of the real estate domain post a challenging two-year period, coupled with escalated state expenditure on infrastructure projects such as ports, airports, and roads, has been instrumental in driving this trend.

Despite temporary obstacles like rate hikes and global economic deceleration, projections remain optimistic as per insights, forecasting an average annual economic growth rate of 6.7% in India until March 2031. This growth trajectory is expected to be propelled by burgeoning manufacturing, service exports, and consumer demand. An enhanced business atmosphere and favorable policy initiatives have triggered substantial domestic and international investor enthusiasm, particularly in the construction sector, which stands as India’s second-largest employer after agriculture.

Rising household incomes and increased outsourcing by global service providers to India have spurred a surge in real estate demand, not only in major urban centers but also in smaller towns. The consultancy predicts that by 2030, India’s construction industry, in tandem with real estate services, could constitute about 20% of the nation’s economy, offering employment opportunities to 100 million workers.

Within this sector, job creation is expected across diverse categories, including 10.5 million skilled laborers, nearly 80 million semi-skilled workers, 1.1 million engineers, 1.5 million technicians, and a million clerical staff. Additionally, an escalation in annual real estate turnover from the current $650 billion to $1 trillion has been envisioned by 2030. This expansion could potentially absorb a significant portion of the annual influx of engineering graduates and rural migrant laborers into the job market.

However, despite the promising prospects, the construction industry faces the challenge of retaining talent. Insights reveal that only 50% of civil engineering graduates presently remain in the sector due to difficulties in meeting industry demands and the allure of easier employment opportunities elsewhere.