Growth trajectory at risk
Despite robust economic growth, the Construction Sector faces a pressing challenge. Projections indicate substantial contributions by 2025, with cross linkages and a growth rate of at least 6% (AAGR). However, a critical shortage of skilled professionals poses a formidable threat to sustained expansion.
Workforce dilemma: A ticking time bomb
Annually, 1.5 million engineers enter the workforce—a number that should ideally fuel the Construction Sector. Yet, reality paints a different picture. To meet escalating demands, industry estimates indicate a need for four million skilled engineers in this decade. Current initiatives to bridge the industry-academia gap fall short, underscoring a profound skill-aspiration mismatch.
Education woes: A crisis unfolding
Despite being the oldest industry globally, the Construction Sector grapples with technological evolution, heavily reliant on a skilled workforce. The Engineering & Technology education sector, crucial for supplying skilled professionals, lags in reform. While the New Education Policy (NEP 2020) pioneers reform, its implementation lags, hindering adaptation to new-age construction knowledge and skills. A staggering 85% of schools lack vocational education, accentuating the crisis.
Admission woes: A collapsing foundation Higher Education Universities, pivotal for nurturing professionals, witness shockingly low admission rates in Mechanical & Civil Engineering—46% and 48%, while Computer Science & Electronics soar past 60%. This disparity results in subpar faculty and education standards. AICTE reports the discontinuation of 724 civil engineering courses across 644 colleges in the past 10 years, signaling a failure to attract educated youth.
Understanding low admission rates: A call for intervention
Despite assurances of placements, the infrastructure and construction sector grapples with unnervingly low admission rates. Parental and student preferences are swayed by the service sector’s rise and perceived hazards in construction. A total of 724 civil engineering and related courses were discontinued across 644 colleges between 2012 and 2022, compelling AICTE to permit a 50% reduction in core engineering branch intake.
Vocational education and apprenticeship models: The imperative shift
Addressing the widening skill gap demands a paradigm shift towards vocational education and apprenticeship models. The World Economic Forum’s proposal to invest in upskilling could potentially boost India’s economy by $570 billion, creating 2.3 million jobs by 2030. Despite the intensive focus by the government on Vocational Education, PLFS (FY 21) data shows that only 15.6% of those in the age group 12-29 received some form of Vocational and Technical Training, with only a dismal 3% institutionalized. This underscores the need for effective delivery of government initiatives and private industry collaboration. While government schemes like PMKVY-TI, EETP, and NEEM are steps in the right direction, effective implementation hinges on coordinated efforts between the government and private industry players.
Industry recommendation: Ecosystem approaches for urgent action
Successful initiatives in the construction sector underscore the impact of ecosystem-based strategies on employability enhancement. The industry must urgently establish institutionalized frameworks, allowing patrons and leaders to actively shape students’ education. The focus must be on nurturing future leaders in construction project management, proficient in systems-based approaches, core employability skills, and effective communication.
Realizing the demographic opportunity: Now or never
India’s demographic advantage, a large and young working-age population, demands an immediate ecosystem-based approach. Government incentives must align with active private industry participation. While 84% of industry leaders and professionals in the construction sector express optimism about the construction market’s direction, 86% acknowledge the urgent need for innovative training programs to attract the next-generation workforce, according to the KPMG Global Construction Survey.
Collective engagement: A call for immediate action
Achieving growth projections and leveraging the demographic opportunity necessitate immediate collective engagement across the construction ecosystem. Decision-makers must act swiftly to avert a crisis that could jeopardize India’s economic ascent. The time to act is now—before the skills gap widens further and undermines the nation’s construction potential.
This hardhatOPINION was written for Construction Week by Bhagya S Nair co-founder at InCoBAN & Gourishankar S program co-ordinator
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