Material Insights · Understanding the Material World

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.