India's construction sector to employ 100 million, requires skilled workforce for economic growth: Report
1 min read 03 Aug 2023, 02:28 PM ISTIndia's construction sector needs skilled workers to achieve economic growth targets, with employment estimated to reach 100 million by 2030. Currently, over 80% of the workforce is unskilled
PremiumIndia's employment in the construction sector is estimated to grow to 100 million to attain economic growth targets, according to a report by Knight Frank India
The construction sector, which is the second-largest employment generator in the country, is estimated to employ 71 million of the workforce by 2023.
More than 80% of this workforce is unskilled, and only 19%, that is 1.3 million of the workforce in the real estate sector are skilled employees, the report mentioned. Whereas 4.4 million are core skilled employees, which includes engineers, technicians, clericals, etc, and 6.9 million are vocationally trained employees.
According to the National Skill Development Council (NSDC), 87% of the employees (both skilled and unskilled) are absorbed by the real estate sector, while 13% are absorbed by the infrastructure sector.
As per the Knight Frank report, between 2012-21, the cumulative supply of core skilled employees i.e. civil engineers, was 8,96,864. And, it is estimated that 17 lakh civil engineers may seek employment by FY2029-30--growing at a CAGR of 10.4% with an average annual increment of 1.8 lakhs.
India has nearly 3,200 universities and colleges providing full-time construction-related courses at present.
CONSTRUCTION SECTOR AND INDIA'S ECONOMIC GROWTH
In the last ten years, the output from India’s construction sector (infrastructure and real estate ) has grown at a CAGR of 11%. The construction sector, along with the output generated from real estate services and ownership of dwellings, contributes 18% to the economy’s total output, as per the report.
Between FY 2012-22, India’s construction sector attracted a cumulative FDI inflow of $35 billion.
The output generated from India’s real estate sector is estimated to grow to $1 trillion by 2030 from the existing $650 billion on the back of residential demand, commercial, retail, hospitality, and warehousing developments, etc.
Shishir Baijal Chairman and Managing Director - Knight Frank India said, "In the recent few decades, India’s economy has significantly grown positioning itself as one of the fastest growing economies globally. In tandem with economic growth, the construction sector has significantly expanded. The sector has contributed nearly 18% to the total economic output and is highly correlated with the economy’s GDP growth". "For optimum growth, the sector needs skilled as well as semi-skilled employees aiming at maximizing productivity levels," he added.
