India has witnessed a steady growth in infrastructure over the recent years, and foreign investors have shown keen interest in investing in this sector. The Planning Commission has envisaged a trillion dollar investment in infrastructure between 2012-13 and 2016-17, and expects half of the money to come from the private sector. The sector is important for the Indian economy, accounting for 37.9 percent of the country’s industrial output.
The sector is a very large employer. Although the construction industry employs 33 million people, second only to the agricultural sector, the incremental workforce requirement is around four million people per year over the next seven years to sustain the current growth rate. The construction industry is set to face a challenge in terms of sourcing manpower. Adding to this problem is the shortage of contractors.