Construction Sector Growth and Challenges
The construction sector is the fastest-growing industry in India, contributing about 9% to the national GDP and projected to reach a market size of $1.4 trillion by 2025. By 2030, it is estimated that around 3 crore workers will be employed in this sector.
Labour Shortages and Structural Issues
- N. Subrahmanyan of Larsen and Toubro highlighted concerns over labour shortages, attributing them to workers' reluctance to relocate due to welfare schemes.
- The employment landscape for construction workers is fragmented, marked by frequent relocations, job insecurity, and inconsistent access to welfare benefits.
Welfare Challenges
- The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) (BOCW) Act, 1996 aims to provide welfare benefits but accessing them is difficult.
- 5.65 crore construction workers are registered with State construction boards, which have collected around ₹70,000 crore in cesses, but most remain unutilized.
- Documentation requirements such as proof of identity and residence are significant barriers due to the transient nature of their work.
- An employment certificate validating 90 days of work is needed, but many employers do not provide it, complicating eligibility verification.
- 75% of collected welfare funds remain unutilized due to fragmented databases and cumbersome registration processes.
Migrant Workers and Portability Issues
- Migrant workers face challenges due to the lack of interoperable systems across states, disrupting continuity in welfare benefits.
- For example, a worker registered in Haryana cannot access benefits if they relocate to Delhi.
Proposed Reforms
- Implement a unified national labour identification system similar to the One Nation One Ration Card for inter-state portability of benefits.
- Adopt open-source digital platforms for efficient welfare scheme management and transparency.
- Simplify documentation processes and facilitate bulk registrations through on-site camps.
- Invest in skill development and ensure safe working conditions to enhance productivity and worker retention.
In conclusion, addressing labour shortages requires resolving systemic barriers to welfare access and employment continuity, which will create a stable, skilled, and resilient workforce.