Unlocking Growth Opportunities in India’s Construction Industry

Our first Industry Collaboration at Hyderabad

In a dynamic and rapidly evolving global landscape, the construction industry stands as a cornerstone of India’s economic growth, contributing a substantial 9% to the nation’s GDP and employing a staggering 74 million individuals, both in urban and rural areas. However, despite its significant role, this sector faces its fair share of challenges, with workforce shortages and inadequate access to skills leading to financial burdens, such as cost overruns, and operational hurdles, including project delays.

 

Even in the age of digital transformation and the unprecedented growth of the realty segment, the construction industry grapples with a distinct gap that impedes its progress — the lack of collaborative partnerships among industry players, innovators, and government stakeholders to develop scalable models for skilling construction workers. The root causes of these challenges are multifaceted, encompassing insufficient investments, limited incentives for industry partners, slow technological integrations, and low levels of aspiration among the workforce.

 

As a result, there is an urgent need for collective action to establish ecosystems that foster innovation enterprises within the construction industry, with a direct and indirect impact on the semi-skilled and unskilled construction workforce.

 

The issue of skills mismatch and the scarcity of employment opportunities extends beyond India’s borders, representing a global concern. Additionally, rapid changes in labor market demands necessitate continuous retraining and upskilling for workers of all age groups.

 

Recognizing these pressing issues, the Construction Skill Development Council of India (CSDCI) has embarked on a mission to engage with industry stakeholders and skilling organizations, fostering collaborative opportunities aimed at accelerating organizational growth and addressing critical skill development challenges.

 

The inaugural event, “Collaborating Opportunities – Ways & Means to Scale and Speed up Organizational Growth,” which took place on May 22nd in Hyderabad marks the first of many initiatives to come.

Our Past events (few glimpes above)

Date

Location

22-May-23

Hyderabad, Telangana

17-Jun-23

Vizag, Andhra Pradesh

11-Aug-23

Guwahati, Assam

18-Aug-23

Kochi, Kerala

At the heart of this endeavour lies the vision to create a platform for industry players to not only raise awareness about these challenges but also to explore opportunities for collective action. This platform brings together builders, developers, contractors, architects, consultants, skilling organizations, and students, making it a nexus for diverse stakeholders invested in the future of the construction industry. The ultimate goal is to foster an ecosystem conducive to growth, innovation, and skill development, ensuring the sector’s sustainability and competitiveness.

 

CSDCI’s “Collaborating Opportunities” events serve as catalysts for change within the construction industry, uniting stakeholders to collectively address critical issues related to workforce development and skill enhancement. With the backing of industry leaders and government support, CSDCI is on a mission to transform the construction industry landscape, creating a brighter future for both skilled and unskilled workers and enhancing India’s global competitiveness in this vital sector. Together, through collaboration and innovation, CSDCI aims to shape the future of the construction industry, driving economic growth and prosperity across the nation.

CSDCI’s Distinguished Event at Taj Santacruz, Mumbai

In a noteworthy event that resonated with prestige and knowledge, CSDCI had the distinct honor of hosting Dr. Nirmaljeet Singh Kalsi, retired IAS and Chairperson of NCVET, at the opulent Taj Santacruz, Mumbai, on December 22nd. The ambiance of Taj Santacruz provided the perfect backdrop for an evening filled with insights and discussions that promised to shape the future of Vocational Education and Training (VET) in India.

Diverse Audience

The event drew a diverse and illustrious audience, encompassing industry leaders, academic stalwarts, representatives from skilling organizations, technology partners, subject matter experts, and Small and Medium-sized Enterprises (SMEs). The presence of such a varied assembly underscored the broad impact and relevance of the discussions that unfolded during the course of the event.

Dr. Nirmaljeet Singh Kalsi and Colonel Santosh Kumar were the guests of Honors

The event was graced by the esteemed presence of Dr. Nirmaljeet Singh Kalsi, a luminary in the field of education and vocational training, whose experience as a retired IAS officer brought a wealth of insights to the gathering. Adding to the honor was Colonel Santosh Kumar, the Member Secretary and Director of NCVET, whose attendance further elevated the significance of the evening.

Dr. Kalsi’s enlightening address

Dr. Kalsi, in his address, delved into critical aspects shaping the landscape of vocational education. From the intricacies of creditization to aligning World Skills Qualifications and providing updates on the progress of PM Vishwakarma Training assessments, every facet was meticulously explored. The audience was treated to a visionary roadmap, highlighting the envisioned way forward for Vocational Education and Training in India.

The success of the event wouldn’t have been possible without the active participation and engagement of the attendees. A sincere thank you goes out to all the industry leaders, academia representatives, skilling organizations, technology partners, subject matter experts, SMEs, and every delegate who contributed to making this event a resounding success.

Shaping the Future of VET in India

As the curtains closed on this distinguished event at Taj Santacruz, Mumbai, the resonance of Dr. Kalsi’s insights and the collective vision of the attendees lingered. The event marked not just a gathering of professionals but a convergence of minds dedicated to shaping the future of vocational education in India. CSDCI, with this event, continues its mission to be a driving force in transforming the landscape of skilling and education in the country.

Unlocking Growth Opportunities in India’s Construction Industry

Our first Industry Collaboration at Hyderabad

In a dynamic and rapidly evolving global landscape, the construction industry stands as a cornerstone of India’s economic growth, contributing a substantial 9% to the nation’s GDP and employing a staggering 74 million individuals, both in urban and rural areas. However, despite its significant role, this sector faces its fair share of challenges, with workforce shortages and inadequate access to skills leading to financial burdens, such as cost overruns, and operational hurdles, including project delays.

 

Even in the age of digital transformation and the unprecedented growth of the realty segment, the construction industry grapples with a distinct gap that impedes its progress — the lack of collaborative partnerships among industry players, innovators, and government stakeholders to develop scalable models for skilling construction workers. The root causes of these challenges are multifaceted, encompassing insufficient investments, limited incentives for industry partners, slow technological integrations, and low levels of aspiration among the workforce.

 

As a result, there is an urgent need for collective action to establish ecosystems that foster innovation enterprises within the construction industry, with a direct and indirect impact on the semi-skilled and unskilled construction workforce.

 

The issue of skills mismatch and the scarcity of employment opportunities extends beyond India’s borders, representing a global concern. Additionally, rapid changes in labor market demands necessitate continuous retraining and upskilling for workers of all age groups.

 

Recognizing these pressing issues, the Construction Skill Development Council of India (CSDCI) has embarked on a mission to engage with industry stakeholders and skilling organizations, fostering collaborative opportunities aimed at accelerating organizational growth and addressing critical skill development challenges.

 

The inaugural event, “Collaborating Opportunities – Ways & Means to Scale and Speed up Organizational Growth,” which took place on May 22nd in Hyderabad marks the first of many initiatives to come.

Our Past events (few glimpes above)

Date

Location

22-May-23

Hyderabad, Telangana

17-Jun-23

Vizag, Andhra Pradesh

11-Aug-23

Guwahati, Assam

18-Aug-23

Kochi, Kerala

At the heart of this endeavour lies the vision to create a platform for industry players to not only raise awareness about these challenges but also to explore opportunities for collective action. This platform brings together builders, developers, contractors, architects, consultants, skilling organizations, and students, making it a nexus for diverse stakeholders invested in the future of the construction industry. The ultimate goal is to foster an ecosystem conducive to growth, innovation, and skill development, ensuring the sector’s sustainability and competitiveness.

 

CSDCI’s “Collaborating Opportunities” events serve as catalysts for change within the construction industry, uniting stakeholders to collectively address critical issues related to workforce development and skill enhancement. With the backing of industry leaders and government support, CSDCI is on a mission to transform the construction industry landscape, creating a brighter future for both skilled and unskilled workers and enhancing India’s global competitiveness in this vital sector. Together, through collaboration and innovation, CSDCI aims to shape the future of the construction industry, driving economic growth and prosperity across the nation.

Pradhan Mantri Vishwakarma Yojana

PM Vishwakarma, a Central Sector Scheme, was launched on 17th September 2023 by the Prime Minister to provide end-to-end support to artisans and craftspeople who work with their hands and tools. The Scheme covers artisans and craftspeople engaged in 18 trades, viz. Carpenter (Suthar/Badhai), Boat Maker, Armourer, Blacksmith (Lohar), Hammer and Tool Kit Maker, Locksmith, Goldsmith (Sonar), Potter (Kumhaar), Sculptor (Moortikar, stone carver), Stonebreaker, Cobbler (Charmkar)/ Shoesmith/Footwear artisan, Mason (Rajmistri), Basket/Mat/Broom Maker/Coir Weaver, Doll & Toy Maker (Traditional), Barber (Naai), Garland maker (Malakaar), Washerman (Dhobi), Tailor (Darzi) and Fishing Net Maker.

CSDCI participated in encouraging Vishwakarma for trade Mason which is categorised into four namely Brick Mason, Concrete Mason, Plastor Mason, and Tile Mason.

During the event, Our CEO Shri Narendra Deshpande spoke on the latest AR-VR technology. CSDCI takes a lot of initiatives to make training easy for all learners. One such initiative is AR-VR which enables learners to learn quickly, in safe conditions, yet experiencing real-world unsafe conditions. This also avoids the high consumable expenditure for training, as it keeps increasing with the increasing number of learners.

More about the PM Vishwakarma Yojana

The objectives –

  1. To enable the recognition of artisans and craftspeople as Vishwakarma making them eligible to avail all the benefits under the Scheme.
  2. To provide skill upgradayion to hone their skills and make relevant and suitable training opportunities available to them.
  3. To provide support for better and modern tools to enhance their capability, productivity, and quality of products.
  4. To provide the intended beneficiaries an easy access to collateral free credit and reduce the cost of credit by providing interest subvention.
  5. To provide incentives for digital transaction to encourage the digital empowerment of these Vishwakarmas.
  6. To provide a platform for brand promotion and market linkages to help them access new opportunities for growth.
Hon’able PM Shri Narendra Modi talking to our masons at CSDCI stall on the day of launch 

Scheme benefits –

1. Recognition – Recognition as Vishwakarma through Certificate and ID card

2. Skilling –

a. Skill Verification followed by 5-7 days (40 hrs) Basic Training

b. Interested candidates can also enroll for 15 days (120 hrs) Advanced Training.

c. Training Stipend – INR 500 per day

3. Toolkit Incentive – INR 15000 grant

4. Credit Support –

a. Collateral free Enterprise Development Loans – INR 1 lakh (First Tranche for 18 months repayment) and INR 2 lakh (Second Tranche for 30 months repayment)

b. Concessional Rate of Interest – 5% to be charged from the beneficiary with Interest Subvention cap of 8% to be paid by MoMSME

c. Credit Guarantee fees to be borne by GOI.

5. Incentive for Digital Transaction: INR 1 per transaction for maximum upto 100 transactions (monthly)

6. Marketing Support: National Committee for Marketing (NCM) will provide services such as Quality Certification, Branding and Promotion, E-commerce linkage, Trade Fairs advertising, publicity, and other marketing activities.

CSDCI Ushering a New Era in Construction Excellence

Construction and skills have been rooted right since the time civilization came into existence. From Caves to Mud Huts, Megalithic Stones to Mega Highways and Skyscrapers – the evolution of construction reflects mankind’s unrelenting and unending quest and ever-growing mastery of raw materials and technology. The abundance of heritage structures in India not only evidences ‘abundance and mastery of skills’ but is unique in many ways. It is unique because of following facts – 

 

  1. The presence of these heritage structures continues to harvest more inquisitiveness and the quest for new materials, and technology.
  2. These heritage structures stand strong and durable through hundreds and thousands of centuries as a testimony to the skills, materials, and technology.
  3. As descendants of the civilization, the writing on the wall distinctly conveys a belief embedded strongly in the DNA of the citizens born in this country – Arise and awaken that the potential lies untapped in every ‘Vishwakarma’, the potential to learn, demonstrate such skills that our forefathers challenge even today to vide these heritage structures.

Construction’s history is complex, huge and expansive and it is impossible to do justice through this small article. Vishwakarma’s, Architects and Engineers as they might be called by different names, have been involved in everything we see, we touch or rely upon. The most significant liability compared to other professions is that the works are out in open where all can see them and if the works do not work then we are dammed. There is no other option but to be ‘First Time Right’.

 

Complexity and complications are the present-day attributes of the construction industry. While complications can be addressed by knowledge and skills, complexity is more a creation of mankind and is more internal to the organization and industry.

 

Vital steps if implemented with enhanced participation from all the industry players and supported by the facilitative policies and regulations, will catapult the construction industry to the advanced league are – 

 

  1. The scale and speed of this skill development activity have to increase exponentially to get the dividends from the demographic advantage position that we are in today. Also, we are aware that effective and efficient skills are subject to exposure and practice and therefore take time to build. Remember that effectiveness and efficiency at the last mile are the effectiveness and efficiency at the project, organization level, and industry at large.
  2. ‘Collective and Collaborative Workmanship’ is essential to enhance degree of effectiveness and efficiency of ‘Skill’ delivered.
  3. Visibility and awareness of the opportunities available on skill development to the last mile aptly supported by counseling and career guidance tools are taken up aggressively.

Despite these odds, today India’s Construction Industry

 

  • Was valued at INR 3 Trillion by the end of March 2022
  • Planned Investment will surpass INR 100 Trillion by 2025
  • 2nd Largest Road Network
  • 3rd Largest in Aviation
  • 4th Largest in Rail Network
  • 19th in Shipping Network………etc.

Foundation of Construction Skill Development Council of India (CSDCI)

 

Construction Skill Development Council of India (CSDCI) has been constituted under the mandate of the National Skill Development Corporation (NSDC), as one of its own Public Private Partnership Organizations to promote Skill Development across the Sector. As an apex ‘Sector Skill Council’ representing the construction industry and as an ‘Awarding Body’ of ‘National Council for Vocational Education and Training’ (NCVET) it operates under the aegis of the ‘Ministry of Skill Development & Entrepreneurship’ (MSDE). Construction Skill Development Council of India is promoted by four big associations of the construction industry i.e., Builders Association of India (BAI), Confederation of Real Estate Developers Association of India, (CREDAI), National Highway Builders Federation (NHBF) and Construction Federation of India (CFI).

 

While in simple language our mandate is to bridge to the concerns of the industry, it involves a fleet of activities that will facilitate us to build bridges such as

 

  • Identify, Map and pursue Cluster Analysis and Skill Gap Surveys at large,
  • Define, Evolve / Develop, and Deploy Competency Framework i.e., National Occupation Standards, Qualifications compatible with global standards of performance,
  • Identify, Develop, and Accredit Training Centers of Excellence besides identifying industry-specific ‘Subject Matter Experts’, developing Master Trainers / Trainers and Master Assessors / Assessors,
  • Ensure that required visibility and awareness exist across the industry which will facilitate making the sector more aspirational,
  • Ensure robustness of the skill training, assessment, and certification as per guidelines/norms of the regulatory authority i.e. National Council for Education and Training (NCVET) to ensure qualitative delivery of the skills,
  • Build ‘Advocacy and Implementation’ of the National Apprenticeship Promotion Scheme across the sector to ensure students are industry-ready when employed and there exists an exchange of knowledge and practice.

An Opportunity for Construction Workers that Leads to Sustainable Growth

 

Developing and Qualifying an individual for Skills is perhaps the most sustainable social responsibility delivered. While the National Skill Qualification Framework (NSQF) has been implemented for almost a decade, the introduction of the National Credit Framework has shown us all a glowing light at the end of the tunnel. The National Skill Qualification Framework (NSQF) coupled with the National Credit Framework is a magic tool in the hands of the 80% of the construction workforce to catapult their life to the next level and therefore eliminate the worries of earnings daily. It presents an opportunity to rise the ladder of operational success.

 

Assessing and Certifying approximately 12 lakh construction workers in the past decade by the Construction Skill Development Council of India has ensured

 

  • sowing the seeds of the importance of skills and qualifying them
  • opened multiple doors of employment and growth

Although not substantial, the efforts over the last decade have ensured enhanced wages for the qualified skills besides giving them options for employment.

 

Qualifications under the National Skill Qualification Framework are holistic and comprehensive and ensure that all aspects of development are covered for the individual. Besides domain-specific skill development (which also focuses on the use of modern tools to improve quality and productivity) qualifications also focus on Safety, Digital Literacy, Financial Literacy, Employability Skills (which includes Soft Skills topics such as Communication, Team Work etc.), Entrepreneurship Skills etc. The construction sector has welcomed one and all always and provided them an opportunity to learn and earn. Needless to say, there are umpteen numbers of examples where one can see and believe that construction workers with their sheer hard work and dedication have become good-to-do contractors today.

 

Further, programs such as Pradhan Mantri Vishwakarma are poised to ensure that more and more construction workers become financially independent. Independent impact studies by multiple organizations have captured an increase in wages of construction workers post-skill training over different skill development schemes/initiatives carried out by the government.

 

The construction sector still has to do away with the challenges that it faces today. Some of these are as below:

 

  • Excessive use of Sub-Contracting
  • Non-utilization of Labour Welfare Cess for Skill Development Activities

The construction sector may not become a fully organized industry but adopting certain traits of the formal industry will propel it next level of performance. Skill development as one of the traits of the formal industry is already adopted. However, we could further this by following steps:

 

  • All the labor supply contractors which currently operate in the non-conventional format, start working as ‘Professional Staffing Agencies’.
  • Construction workers working at construction sites are provided with ease of working and living at or near construction sites.
  • Ensure that construction workers get their salaries on time if not monthly, maybe twice a month, and vide direct benefit transfer.
  • Proportionate to the number of construction workers present in the state, the state welfare board should extend welfare measures irrespective of from which state the worker is originating. For this ensure the portability of labor welfare registration numbers of construction workers exists across all the states.

<to be continued in the next issue>