Builder Association of India (BAI)

India’s construction industry is expected to become the third largest in the world by 2025, with a total size of USD 1.4 trillion. I believe that by imbibing sustainable practices, investing in skilled labour, fostering partnerships between developers, contractors, and technology providers, the industry can drive innovation and best practices and achieve long-term success.
K. Viswanathan - President, Builder Association of India (BAI)

What is your assessment of the current state of India’s construction and real estate sectors, and what challenges are they facing?

The Indian construction sector has been a key contributor to the country's economic growth and development. It plays a crucial role in infrastructure development, housing, and urbanization. However, like any industry, it faces a set of challenges while also presenting opportunities for growth and innovation.

However, there is a lack of energy-efficient guidelines: Policymakers have prioritized large commercial sectors over residential buildings, leaving a gap in formal energy-efficiency guidelines for new housing developments.

The industry faces a significant shortage of skilled labor, hindering its growth potential. There are complex regulatory frameworks and limited infrastructure status for affordable housing. The sector also needs to adopt innovative construction technologies (ConTech) and property technologies (PropTech) to stay competitive.

Despite its share of challenges, the Indian construction sector is poised for growth and transformation. By navigating regulatory hurdles, adopting innovative technologies, and addressing environmental concerns, construction companies can unlock significant opportunities in India's burgeoning economy.

As the President of BAI, what are your top priorities in addressing these challenges and improving construction quality?

I am advocating for policy changes to promote energy-efficient buildings, simplify regulatory frameworks, and grant infrastructure status to affordable housing. I am collaborating with CSDCI to develop training programs and certification courses for construction professionals, and encouraging the adoption of ConTech and PropTech to enhance construction quality, reduce costs, and increase efficiency.

I believe that by fostering partnerships between developers, contractors, and technology providers, the industry can drive innovation and best practices, and with the right planning and strategies, it can unlock its full potential.

The real estate sector faces challenges like land transaction complexities, restrictive FSI regulations, and cartel control over key inputs. How is BAI addressing these issues with the government, especially in relation to input tax credits, stamp duties, and FSI reforms to reduce housing costs and increase land supply?

Certain tax benefits and exemptions were enjoyed by the real estate sector under the pre-GST regime. However, post-GST implementation, most real estate transactions came under the GST net, which increased the tax burden of developers and buyers, and property prices went up.

Plus, the real estate players had to get accustomed to the new GST compliance requirements like filing returns at regular intervals, maintaining detailed records, and keeping up with stringent deadlines. This led to an additional administrative burden and compliance costs for developers, particularly for the small players who did not have the resources and the expertise.

BAI is actively engaging with the government to address the challenges faced by the real estate sector. We have demanded increased infrastructure spending by urging the government to allocate 10% of the country's GDP towards infrastructure development, underscoring the sector’s critical role in driving long-term economic growth and creating jobs.

The Association has also pressed upon tax incentives for infrastructure companies by advocating for a reduction in the corporate tax rate to 15%. It has said that it will help stimulate investment and improve large-scale projects' financial viability. It has also demanded streamlined approvals for a single-window clearance system to expedite approvals for construction and infrastructure projects, and has sought to reduce bureaucratic delays and encourage timely project completion.

We appeal to the Government to extend relief measures to the construction sector in line with the agriculture sector by granting industry status to it and constitute an exclusive ministry for it.

BAI is advocating for a Unified Standard Contract Document across India. Given the diverse regulatory requirements of different states and local authorities, do you think this initiative is feasible? What challenges do you foresee in implementing this nationwide?

BAI, for a very long time, has been emphasizing on the adoption of a Uniform Contract Document based on the FIDIC Contract with adequate Price Variation and Arbitration clauses in order to overcome innumerable issues while executing contracts. The present contract document is one sided and it is still a ‘British Raj Legacy.’ A revision of the contract document will certainly help contractors to execute projects with quality and on time so that the public can enjoy the benefits. This will also restrict the cost overruns of projects. In this regard, NITI Aayog finalized a Contract Document on 13th April 2018 with inputs from all stakeholders. It is still available on its website. NITI Aayog should forward it to all the states for its adoption by the works authorities.

As of now, each department or works authority of the central and state governments have their own contract document. This makes it difficult for an infrastructure contractor who works with multiple works authorities. BAI is therefore propagating a Unified Standard Contract Document across India. No doubt, this is not easy, since many departments or works authorities may have their own requirements or methods. For this, we are suggesting that the core clauses be unified and respective departments or works authorities can have their own additional clauses as per their need.

How are innovations like modular construction, precast technology, 3D printing, and PEB shaping the future of India’s infrastructure? What are the key benefits of these technologies in terms of efficiency and sustainability; what are the main barriers in adopting them on a larger scale, and how can BAI help promote their use across India?

The Indian construction industry is poised for a significant transformation over the next two decades. With a strong focus on infrastructure development, India will invest over 1.40 trillion USD in the next five years on infra construction. To meet the demands of the planned infra projects, economically and sustainably, innovations and advancements in R&D are taking place across materials, technologies, methodologies, and mechanization.

However, there are barriers to their adoption such as the high upfront costs, lack of awareness and training, regulatory hurdles, limited availability of raw materials, and resistance to change from traditional methods.

BAI plays an active role in promoting the new technologies and construction methods through awareness campaigns, training and certification programs, industry workshops and seminars, policy advocacy, collaboration with government agencies, development of standards and guidelines, showcasing successful projects and case studies, and facilitating networking among stakeholders.

As the Indian construction industry moves towards a future of smart infrastructure, sustainable practices, and groundbreaking technologies, the opportunities for growth and innovation are immense. Builders, contractors, and developers must adopt these advancements to remain competitive in a rapidly evolving landscape.

With sustainability in construction becoming increasingly important, how can the industry improve practices around recycling and reusing materials, particularly plastics and construction debris? What initiatives is BAI taking to promote the use of recycled materials, especially in large-scale infrastructure projects?

By repurposing and recycling building materials like plastic shuttering sheets, plastic door frames, and recycled aggregates, into durable, long-lasting building materials, the industry can reduce both waste generation and demand for raw materials, help reduce environmental impact, support economic growth, facilitate job creation, and bring sustainability to projects. Sustainable construction in India is not just an emerging trend; it is a necessary shift towards a more responsible and resilient future. As the industry grows, adopting green building solutions will become even more critical.

With M-Sand becoming more commonly used as a substitute for natural sand, how do you view its impact on the quality, availability, and cost of construction materials?

Traditionally, river sand has been the preferred choice due to its availability and natural characteristics, but with rapid urbanization and infrastructural development, the scarcity of this natural resource has become a pressing concern. This has led to the emergence of manufactured sand (M-Sand) as a viable, eco-friendly alternative. M-Sand is artificial sand produced by crushing hard stones into small sand-sized particles, refined and washed to be used as a construction aggregate. It mimics the properties of river sand while addressing some of the critical environmental and logistical challenges associated with natural sand.

One of the primary advantages of manufactured sand is its ability to mitigate environmental damage caused by sand mining. Excessive extraction of sand from rivers leads to the depletion of riverbeds, which can result in erosion, loss of aquatic habitats, and lowering of the water table. M-Sand, produced from granite or other hard stones, does not require the same extensive mining of natural sources, thereby preserving rivers and coastal areas.

M-Sand not only reduces the pressure on natural sand resources but also utilizes aggregate waste from quarries. By recycling waste rock and converting it into usable construction material, M-Sand reduces energy consumption and waste management challenges.

M-Sand is increasingly recognized as a solution to the challenges posed by the scarcity of natural sand. Its numerous advantages, including enhanced strength, consistent quality, and reduced environmental impact, make it an attractive choice for the construction industry. As demand continues to rise, investing in M-Sand production not only addresses the needs of modern construction but also promotes sustainable practices.

To reduce the construction sector’s carbon footprint, what specific actions should be prioritized by the government, industry leaders, research institutions, and organizations like BAI?

Carbon reduction is no longer a choice or an impossibility, it is a necessity. The construction industry will play a pivotal role in leading the collective global community towards carbon emissions reduction. The World Green Building Council has provided an in-depth report on how, we, as an industry, can reduce our embodied carbon footprint. We have summarized five of these key steps below:

• Measure Embodied Carbon Emis- sions: We need to start measuring what our embodied carbon emissions are across the entire construction lifecycle.
• Establish a Baseline: Once we under- stand the scope of our emissions, we can use this as a baseline to establish reduction targets and ultimately a pathway towards net zero. Our current contributions and reduction targets must be available to the public to ensure that we are held accountable.
• Adopt Best Practices: Our industry will need to take actionable steps towards reduction targets. For contractors it will mean disclosure of supply chain data and material selection based on lowest embodied carbon impacts. This will require further adoption of Environmental Product Declarations (EPD) from material manufacturers to be used in the selection process.
• Design with a Low Carbon Approach: Designers must take a fully integrated Life Cycle Assessment (LCA) approach to all design decisions. This includes not only a low carbon approach to designing but also other aspects of the project’s performance such as material, water and energy needs across the entire lifecycle.
• Lead by Example: Asset owners will need to lead by example in requiring all projects to be net zero embodied carbon. This will require changing how we approach vendor and partner selection, and even fund projects to put our environmental impact at the forefront.

A green building is one that follows the practice of designing, constructing, and operating in an environmentally responsible manner. The goal is to reduce its environmental impact and create healthy and productive environments for the people who use them. The government plays a vital role in promoting green buildings by providing incentives, setting standards, and enforcing regulations. The government can also promote the use of generative AI and architecture to design sustainable buildings that are better suited to specific climates, locations, and usage patterns.

What steps is the Construction Skill Development Council of India (CSDCI) taking to address shortage of skilled labor in the construction industry?

CSDCI was formed by the Builders’ Association of India (BAI) and other industry associations to create a credible and effective mechanism with the support of relevant and interested stakeholders to manage the task of skill development across the country and meet the current and future skill needs of the construction industry.

BAI centres are taking up the issue of skill training of construction workers with the CSDCI, including registration of construction workers and the training providers. Needless to state that employment of certified skill workers would reduce wastage, and thereby result in cost savings and better quality of construction. The respective Labour Departments of State Governments also need to be persuaded to release 20% of Construction Workers Labour Welfare Cess collected by the State Government for skill training under a Central Government directive.

How do you see the construction industry of India evolving over the next 5–10 years? What are the key areas BAI will focus on to drive growth, sustainability, and innovation in the sector?

I envision India's construction industry evolving significantly over the next 5-10 years, driven by trends such as Sustainable and Green Building practices, Digitalization and Technology Adoption (BIM, AI, IoT), Infrastructure Development (Smart Cities, Transportation), Affordable Housing and Urbanization, Skill Development and Workforce Empowerment, Innovative Materials and Construction Methods, and through Public-Private Partnerships (PPPs) and FDI.

For achieving this, BAI’s focus areas include promoting eco-friendly practices, energy-efficient designs, and green building certifications; encouraging the adoption of digital tools, BIM, 3D printing, and modular construction; training programs, certification courses, and workforce development initiatives; supporting government initiatives for smart cities, transportation, and affordable housing, engaging with government to streamline regulations, simplify approval processes, and promote industry growth, foster partnerships among stakeholders, including developers, contractors, architects, and engineers, and collaborate with academia and research institutions to develop innovative materials and techniques.

What are BAI’s initiatives and strategic plans to further the cause of the Construction Sector and what outcomes do you envisage?

Plans and Initiatives

• Develop a National Construction Industry Development Plan.
• Establish a BAI Innovation Hub for R&D and technology incubation.
• Launch a nationwide skill development program.
• Create a Green Building Certification framework.
• Host international conferences and exhibitions.

Expected Outcomes

• 30% increase in sustainable and green building projects.
• 25% reduction in construction costs through technology adoption.
• 50% increase in skilled workforce.
• 20% growth in infrastructure development.
• Enhanced industry reputation and global competitiveness.

By focusing on these key areas, BAI aims to drive growth, sustainability, and innovation in India's construction industry, supporting the country's economic development and improving the quality of life for the citizens.