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India’s Construction Sector Accelerates Digital Shift As 84% Firms Boost Tech

India’s construction sector is embracing digital tools like BIM and AI, but slow integration, skill gaps, and limited training continue to hold back full-scale transformation.

BY Asma Rafat
Published - Saturday, 15 Nov, 2025
India’s Construction Sector Accelerates Digital Shift As 84% Firms Boost Tech

India’s architecture, engineering, and construction (AEC) sector is accelerating digital adoption, with leading firms embracing Building Information Modeling (BIM), cloud collaboration, and AI?driven design tools to boost efficiency and sustainability. Yet, full?scale integration remains elusive, mirroring global challenges highlighted in Bluebeam’s 2026 Construction Technology Report.

The report shows that while 84% of AEC firms worldwide intend to increase technology investments in 2026, only 11% have achieved end?to?end digital integration. Nearly half of projects still rely on paper?based workflows, underscoring the gap between ambition and execution. Interoperability issues were cited by 23% of respondents as the biggest barrier, while 65% of firms allocate less than 10% of tech budgets to training, widening the skill gap.

India’s construction landscape reflects similar trends. Large infrastructure and real estate firms are leading the transition with BIM and data?driven project management, while smaller enterprises continue to depend on hybrid workflows. With government programs such as Smart Cities Mission, Gati Shakti, and PM Awas Yojana driving large?scale development, the need for connected digital ecosystems has become a national priority.

Artificial Intelligence is beginning to reshape construction management. Globally, only 27% of firms currently use AI, but early adopters report savings of at least USD 50,000 per project and nearly 1,000 man?hours through automation in planning, scheduling, and document management.

“Digital transformation isn’t about piling on new tools, it’s about removing friction,” said Usman Shuja, CEO of Bluebeam. “The real test of AI in construction is the hours it gives back to teams and the dollars it saves owners.”

Sanjay Kumar, Managing Director of Nemetschek India, added: “India’s construction sector is moving from adoption to integration. The next leap in efficiency and sustainability will come from connected digital ecosystems that unify data across design, construction, and operations.”

The report also notes that 44% of firms view advanced technology as critical to attracting and retaining skilled professionals—a finding especially relevant for India’s labor?constrained industry. As digital ecosystems mature, India’s AEC sector is poised to redefine how infrastructure is planned, built, and managed in the years ahead.

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