The construction industry in India consists of real estate and urban development. Real estate includes residential, commercial, and hospitality projects, while urban development covers infrastructure like transportation, sanitation, and healthcare. The industry is expected to become the third largest globally by 2025 and reach $1.4 trillion by 2025. Project management offers tools to increase efficiency and transparency in the construction industry but faces barriers to widespread adoption.

1. Construction Industry in India
• The Construction industry in India consists of
the Real estate as well as the Urban
development segment.
• The Real estate segment - residential, office,
retail, hotels and leisure parks, among others.
Urban development segment - Water supply,
Sanitation, Urban transport, Schools, and
Healthcare
• Indian real estate attracted $5 billion
institutional investments in 2020

2. Construction Industry in India
• By 2025, Construction market in India is expected to
emerge as the third largest globally, Construction output
is expected to grow on average by 7.1% each year
• Construction equipment industry revenue stood at $ 6.5
Bn in 2020. Cement production increased by 21.8 per
cent in July, 2021 over July, 2020.
• 100% FDI under automatic route is permitted in
completed projects for operations and management of
townships, malls/shopping complexes, and business
constructions and for urban infrastructures such as
urban transport, water supply and sewerage and sewage
treatment.

3. Construction Industry Scenario
• The Construction Industry is expected to reach $1.4 Tn by
2025, which received the 2nd highest FDI in the period 2000-
2020
• The Construction Industry works across 250 sub-sectors with
linkages across sectors, Broadly, divided into real estate and
infrastructure construction.
• The Real Estate Industry in India is expected to reach $1 Tn
by 2030 and contributes to 13% of GDP
• Under NIP, India has an investment budget of $1.4 Tn on
infrastructure - 24% on renewable energy, 19% on roads &
highways, 16% on urban infrastructure, and 13% on railways
• Under the Smart Cities Mission till June 2021, 2,734 projects
have been completed of the total 5,956 projects

4. Construction Growth Drivers
• Smart cities: 100 smart cities currently
• Industrial corridors: Eleven industrial corridors planned
• Railway stations/ lines: 600 stations planned for
redevelopment
• Mega ports: 14 CEZs, 6 new ports are planned and three
mega ports are planned
• Increasing demand for commercial space: Construction of
office spaces, hotels, retail, entertainment units. The net office
space absorption across India's largest 6 cities stood at 31.9
Mn sqft in 2020
• Make in India initative

5. Construction in India
• Inefficient and highly resistant to change
• Project management (PM) seems to offer
what is needed in terms of tools and
techniques to raise industry standards
• Little is known of the extent to which PM
as a discipline exists in India

6. Construction in India
• Indian construction industry is growing and
most of its consultants know of the
existence PM.
• Barriers for the application of PM
knowledge do exist, indicating a high level
of obstacles
• A particular issue is the lack of
encouragement from the construction
organisations

7. Construction in India
• A major difference was also observed between
the public and private sectors - PM is possible
on a large scale in the private sector but not in
the public sector.
• The reasons for this difference are government
policies such as, excessive bureaucracy, poor
execution of projects, compromises on quality
and standards, personal interests, low
transparency and corruption

8. Construction in India
• Construction industry lacks a structure or
pattern
• Tools such as PM can provide the
structure needed
• With the help of this structure the industry
should be able to overcome the problems
involved in increased modernisation and
transparency and be better prepared for
future challenges

9. Construction in India
• In India, the construction industry has been and still is very
labour intensive - current practice utilises the labour force
available and aims to provide maximum employment
opportunities
• Over a long period of time the Indian construction industry has
experienced very few changes in terms of new technologies
and advanced methods
• With ongoing developments and the future interest of many
international organisations, consideration needs to be given to
adopting advanced methods of planning and execution of its
various projects

10. Construction in India
• Despite its world-wide growth, formal PM is
rarely evident in the Indian construction
industry and there is little planning for
capability and professionalism
• With the current growth of construction work in
India, management attention to projects has
become a casualty and organisations are ill
structured for the modern PM task.

11. Construction in India
• Overall, there appears to be a good knowledge base for PM,
its aspects and what project management can provide to the
Indian construction industry
• The establishment of institutes such as NICMAR (National
Institute of Construction Management and Research) and
PMA (Project Management Associates) - India, where courses
and seminars are offered in PM is a good sign for the future of
the industry
• Efforts are needed to make sure of effective implementation
to avoid the situation existing where knowledge is present but
not utilised