Asia

75% Corporates Feel India is still Far from being a “Developed Nation”: CBRE Survey

This survey has attempted to address perception/s of the construction and infrastructure industry through discussing –

  • How far India is from becoming a “Developed Nation”,
  • Why are we not able to adapt better construction techniques from the developed economies
  • What is the importance of investment in education, training, enhancement of skillsets in the construction industries

Commenting on the findings of the survey, Mr. Anshuman Magazine, Chairman – India & South East Asia, CBRE said, “India has emerged as the fastest growing major economy in the world and is exhibiting a high GDP growth rate of approximately 7%. We are listed in the top five most attractive destinations for FDI and not only this, India is expected to be one of the youngest countries in the World by 2020.”

“As a part of the infrastructure industry Real Estate and construction have major impact on the development of an economy. The investor sentiment is positive and we are certain that Real Estate in India will continue to be a huge contributor towards “Building India”, he added.

According to Gurjot Bhatia, Managing Director-Project Management, CBRE India Pvt. Ltd, “Development and focus on the national infrastructure is the most important element towards the growth of any country. The objective of this survey is to create a platform for exchanging ideas with industry leaders, researchers, consultants and other stakeholders. The anticipated outcome from this exercise is to understand the current issues and work towards bridging the existing gaps and developing a holistic approach to help the country develop at the desired pace.”

The survey revealed some very interesting findings and a few amongst them need immediate consideration are as below.

  • More than 85% of the respondents agree that Indian construction industry still needs to adapt to international standards on planning & delivering projects. Dominating factors being
    • Lack of governance and Implementation of existing policies
    • Lack of Investments into Research & Development
    • No Incentives to adapt new techniques & technologies
  • More than 80% agree that Indian construction industry needs to become an organized sector to increase the rate of development in India.
  • 2/3rd of the respondents agree that most of the construction companies lack the management skills to understand and improve the process of development.
  • 2/3rd agree on a severe shortage of skilled workforce at all levels.
  • More than half the respondents agree that there is an immediate need for public and private investment for vocational training for meeting a skilled construction workforce

To summarize, the top five accelerators to make Indian construction industry at par with a developed nation include robust governance and implementation of policies; effective construction management; Awareness on new construction methods & technologies; Quality of materials and construction techniques and Quality of human resources.

Disclaimer:

Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.

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