India’s construction industry is caught in a perilous bind. According to the Indian Economic Survey, construction activities surged with a remarkable 9.9 per cent growth in FY24, fueled by a booming infrastructure buildout and robust demand in commercial and residential real estate. With exports climbing from $3.8 billion in FY23 to $4.6 billion in FY24 and imports holding steady at $2.8 billion, the sector is undeniably a cornerstone of national progress. Yet, it is also mired in a crisis of its own making. Though 13% of India’s workforce is engaged in construction, this vital economic development engine is hampered by a profound shortage of skilled labour. Despite the industry’s impressive scale, employing around 71 million workers as of 2023, a staggering 81% of this workforce remains ill-equipped to meet the soaring demands and drive productivity. The gap is further widened by graduates from construction-related programs who are ill-prepared for the industry’s real-world challenges.
As the sector expands, its transformative potential is stifled by a workforce that lacks the essential skills to navigate its future.
The sector’s informal and disorganised structure, compounded by scant company training investments, has created a critical shortage of skilled labour. With a workforce of 71 million, the construction industry is starkly divided: only 4.4 million workers possess core skills, while 6.9 million have vocational training. This glaring skill gap underscores the urgent need to upskill and reskill over half of the workforce to address the escalating demands of the sector. The traditional reliance on informal training methods and ad hoc employment practices has left many workers ill-equipped to tackle the industry’s complex challenges. Construction apprenticeships emerge as a transformative solution, bridging the skill gap by offering a meticulously structured approach to acquiring essential construction skills. These apprenticeships integrate practical experience with formal education, systematically refining workers’ competencies and aligning their skills with the industry’s evolving needs. By embracing apprenticeships, the construction sector can address its immediate skill deficiencies, formalise and enhance its workforce, and secure its pivotal role in driving sustainable economic progress and development.
Construction apprenticeships to address the industry skill gap and enhance workforce skilling
Integrating education with practical experience
Degree-embedded apprenticeships and work-integrated learning programs represent a promising approach to bridging the skills gap in the construction industry. These initiatives effectively combine formal education with hands-on training, offering a comprehensive pathway that aligns academic learning with practical experience. Data from the National Apprenticeship Promotion Scheme (NAPS) indicates that nearly 40,000 apprentices have been trained across various construction domains in recent years. However, to sustain and expand this success, a collaborative effort involving government, industry and academic institutions is crucial. Such partnerships ensure the scalability and effectiveness of apprenticeship programs, providing a structured framework for workforce skill enhancement.
Addressing the skill gap and formalising the workforce
The construction industry, employing around 71 million workers, faces a significant skill gap. According to the National Skill Development Council (NSDC), only 4.4 million workers possess core skills and an additional 6.9 million have vocational training. This leaves a substantial portion of the workforce unprepared for the sector’s demands. Projections suggest that by 2030, the demand for specialists in engineering, technology, and project management will increase by 1.5 times compared to 2023. Degree-embedded apprenticeships can address this issue by integrating practical training with academic qualifications. These programs allow apprentices to gain hands-on experience in trades like carpentry, plumbing, and electrical work while pursuing degrees in civil engineering or construction management. This dual approach equips them with essential skills and recognised certifications, improving their employability and career prospects.
In contrast to India’s current apprenticeship landscape, the United States has long embraced apprenticeships as a cornerstone of workforce development. In the U.S., apprenticeships account for approximately 50% of construction sector workforce development efforts. This significant disparity highlights the urgent need for India to enhance its apprenticeship programs to meet global standards. While India has seen an impressive growth in apprenticeships – from 716 in 2017-18 to nearly 40,000 in 2023-24 – there remains a substantial gap compared to advanced economies. By further formalising and expanding degree-embedded apprenticeships, India can address its skill deficiencies, enhance workforce capabilities and support the sector’s ongoing growth and innovation. Establishing robust partnerships and aligning educational programs with industry needs will be essential in bridging skill gaps and advancing the industry’s development.
A strategic focus on construction apprenticeships is imperative to navigate the complex challenges facing India’s construction industry and secure its future growth. By integrating structured apprenticeships that blend academic learning with hands-on experience, the industry can not only address its current skill shortages but also foster a highly-skilled, versatile workforce. Embracing this approach will ensure that India’s construction sector remains a dynamic and resilient pillar for the nation’s economic advancement, driving progress and innovation in future years.
References:
