# Construction and infrastructure: Chokepoints and risks

Contractors building roads, rail, ports, power and water networks and buildings

Source page: https://www.materialinsights.org/industries/construction/risks/

#### 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 flow^[2](https://indianinfrastructure.com/2026/02/11/building-at-scale-construction-sector-enters-a-phase-of-rapid-execution/)^,^[4](https://ianslive.in/budget-202627-sets-record-capex-fuels-growth-across-strategic-sectors--20260201145534).
- 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.

## Other sections

- [Overview](https://www.materialinsights.org/industries/construction/index.md)
- [Where ₹100 goes](https://www.materialinsights.org/industries/construction/cost-mix/index.md)
- [Price links with suppliers](https://www.materialinsights.org/industries/construction/price-links/index.md)
- [Example story](https://www.materialinsights.org/industries/construction/story/index.md)
- [Linked industries](https://www.materialinsights.org/industries/construction/linked-industries/index.md)
- [Value chain](https://www.materialinsights.org/industries/construction/value-chain/index.md)
- [Materials drawn on](https://www.materialinsights.org/industries/construction/materials/index.md)
- [Sources](https://www.materialinsights.org/industries/construction/sources/index.md)