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The rise of modern India has been built on the shoulders of millions of workers—carpenters shaping timber, plumbers fitting pipes, and masons laying bricks and stone. These workers rarely get noticed, but without them, no project would stand. Today, however, this vital industry finds itself at a crossroads: the construction sector is growing faster than ever, but the supply of skilled labour is shrinking.
The Indian construction market is expected to reach Rs. 25.31 trillion in 2025, recording an 11.2% annual growth rate. By 2029, it is likely to grow to Rs. 39.10 trillion, making India the world’s third-largest construction market. This boom is driven by smart city projects, industrial expansion, and infrastructure upgrades. Yet in cities such as Delhi-NCR, many construction sites are operating with barely half the required manpower.
Industry leaders warn that the shortage is reaching alarming levels. Larsen & Toubro (L&T) chairman, S. N. Subrahmanyan recently noted that L&T’s construction business alone is facing a shortage of 25,000 - 30,000 labourers.
The reasons are complex. First, there is a gap between what training institutes teach and what modern construction actually needs. Many vocational courses still follow outdated syllabi and fail to prepare workers for technologies like modular construction or sustainable building methods. The workforce is also ageing, with experienced craftsmen nearing retirement and fewer young workers stepping in to replace them.
Migration patterns have also shifted since the pandemic. Earlier, labourers from rural areas moved to cities for steady work. Today, many choose to stay closer to home, helped by government schemes like Pradhan Mantri Awas Yojana-Gramin and MGNREGA that provide income without the need to relocate.
The effects are visible across the industry. Projects take longer to finish, pushing costs higher by 15–20% in many regions. Affordable housing schemes, which have been allocated Rs. 79,000 crore in the Union Budget, are facing delays in smaller towns and cities.
Commercial projects also feel the pinch. The demand for Grade-A offices and large mixed-use complexes is rising, but without enough skilled workers, developers struggle to meet deadlines. National surveys show that 85% of companies in construction face problems hiring trained staff.
Behind these numbers are the lives of real workers. Construction employs nearly three crore people, and this figure is expected to double by 2030. Most are migrant workers, often moving from site to site with little stability. Because of their constant movement, many lack proper documents like birth certificates or residence proofs. This makes it hard for them to register for welfare benefits.
The Building and Other Construction Workers Act, 1996 set up a welfare fund supported by a cess on projects. While Rs. 70,000 crore has been collected under this fund, a 2023 parliamentary panel found that nearly 75% of it remains unused, mainly due to poor registration systems and complicated rules. Workers also struggle to get the required 90 days of employment proof to qualify for benefits, since contractors rarely provide such documents. And seasonal challenges like extreme heat or pollution-related site shutdowns make life even harder.
This cycle discourages young people from entering the trade. Many see construction as physically exhausting and poorly paid, compared to jobs in services or gig work that appear easier and more flexible.
Women form only a small share of the workforce, facing barriers such as lack of sanitation at sites, safety concerns, and absence of gender-friendly training. As a result, the supply of skilled workers like plumbers and carpenters continues to shrink, even as their demand grows.
At a National Real Estate Development Council (NAREDCO) meeting, chairman Niranjan Hiranandani said, “In real estate and infrastructure, we are 20 lakh skilled workers short in India today. On one side we have unemployment, on the other side we have no skilled workers. This is going to grow in the next five years because of real estate and infrastructure growth - the gap will go to 5 million skilled workers. This is a disaster because neither the private sector nor the government sector has been able to fulfil the demand.”
How can this gap be closed? Experts suggest several measures. The government could create a national welfare system that allows benefits to move with workers across states. Training institutes need urgent reforms so that courses reflect modern technologies and industry demands. The Skill India Mission already trains lakhs of workers annually, but it needs to expand its focus on construction trades and apprenticeships.
Technology may also help. Use of prefabrication, building information modelling, and artificial intelligence in project management can cut labour needs by 20–30% in some cases. Developers also need to improve working conditions by providing fair wages, proper amenities, and career growth opportunities, which could attract more young people back to the sector.
At stake is not just the success of individual projects, but the foundation of India’s growth story. As the country pushes towards a $5 trillion economy, the construction sector which contributes about 9% of GDP cannot afford to stall. The workers who build India’s homes, offices, and highways deserve not just recognition, but the support and dignity that will keep them in the workforce.
If India is to continue building its future skylines, it must ensure that the hands that raise them are not in short supply.
