Construction and infrastructure: Chokepoints and risks
Contractors building roads, rail, ports, power and water networks and buildings
Chokepoints and risks
- Land acquisition, environmental clearances and approvals are the main cause of delay and cost overrun in Indian projects.
- India's construction programme leans on central capex of Rs 11.2 trillion in 2025-26 and Rs 12.2 trillion budgeted for 2026-27; any fiscal squeeze slows order flow2,4.
- Cement and steel are energy- and carbon-intensive, exposing projects to coal prices and to carbon border taxes on exported steel.
- Contractor balance sheets are stretched by delayed payments and arbitration claims, so a few failures can strand projects.
- Skilled labour and specialist equipment (tunnel-boring machines, heavy cranes) become bottlenecks in a building boom.