India's Construction Sector Grapples with 2 Million Skilled Worker Shortage

Nagpur: The construction sector, a significant driver of India's economic growth, is currently grappling with a severe shortage of nearly two million skilled workers, as highlighted by veteran builder Niranjan Hiranandani on Saturday. This shortage could impede the sector's ability to keep pace with the rapidly growing real estate market.

Carpenters, painters, plumbers, wire men, and electricians are among the most in-demand trades, Hiranandani noted. He emphasized that this gap must be addressed promptly to ensure the sector's continued expansion. Speaking at the Pride of Real Estate Awards in Nagpur, Hiranandani, who also chairs the National Real Estate Development Council (NAREDCO), stressed that investment in housing remains the most effective pathway for wealth creation and employment generation in the country.

The construction sector recorded a 10% growth last year and is expected to expand by 15% this year. Hiranandani cited China's rapid rise, where the GDP peaked during years of housing-driven growth, suggesting that India could follow a similar trajectory. He stated, 'Construction and housing are the second-largest employers after agriculture, and for both jobs and wealth, housing is the key.'

On Nagpur's prospects, Hiranandani noted that the city's infrastructure size already surpasses its current stage of growth, providing an opportunity for the city to leapfrog into the future. He explained that every new real estate project fuels growth in at least 260 ancillary industries, leading to a 50% increase in economic activity every three years.

Hiranandani called for rapid adoption of technology, faster construction methods, and a push for slum redevelopment. He pointed to Mumbai, where, despite immense wealth, millions still live in slums. 'High-rise rehabilitation, such as the new 30-storey redevelopment projects, should be scaled up,' he suggested. He also urged the government to draft a clear rental housing policy, emphasizing that while ownership is desirable, affordable rental options are equally important.

Highlighting trust as the sector's backbone, Hiranandani said, 'In real estate, we receive money first and deliver later. Transparency and credibility are essential.' He revealed that in Pune, one of their projects sold 1,000 flats in just three days, with 22–25% of buyers being relatives of existing customers—a clear sign of the industry's reliance on trust.