Digitalisation in the Indian construction sector: A comparative study from design to handover

India could become the third-largest economy in the next five years, according to the World Economic Forum. Construction is a significant contributor to the country’s gross value added (GVA), however, labour productivity in India's construction sector is lagging. In a recent webinar moderated by Argenio Antao MRICS, chief operating officer at Colliers India, a panel of experts discuss how digitalisation can boost productivity, efficiency and profit margins in the construction sector.

Construction growth and the economy

India’s economy grew by 7.6% in FY2024 and is projected to grow by 6.7% in FY2025, according to Gleeds' India Biannual Construction Market Report 1Q/2Q FY2025. Manufacturing and construction contributed 14.3% and 8.8% of India’s GVA. Construction is therefore responsible for a significant proportion of the country’s growth, explains James Garner FRICS, head of data, insights and analytics at Gleeds Cost Management. Furthermore, he adds, cement production and steel consumption has increased, indicating robust construction activity triggered by government infrastructure spending and rising household demand for real estate. Without embracing technology, it will be challenging to meet all of India’s growing construction demand, says James.

Using technology to enhance profit

Among the primary drivers of increased digitalisation in the Indian construction sector is efficiency. ‘It's about how you are going to service the volume of projects coming through and make the necessary profit’, says James. The construction industry has struggled with leveraging profit in a relatively low profit-margin industry compared with other industries. Now with technology, the industry can start improving those margins and reinvest. This becomes a virtuous circle, allowing construction to lead rather than lag, he adds. ‘I think that's important because there are some incredibly smart people in this industry and sometimes we just don't have the working capital or the ability to invest in technology as much as we would like’.

Investment and use of digital technologies

Akhil Ganatra, managing director of Clancy Global, agrees that investment in technologies is essential to enhance profitability and improve efficiency and outcomes for construction companies. In India, the use of digital twins – digital representations of existing or planned physical assets – is becoming increasingly popular at the request for proposals (RFP) or request for quotes (RFQ) stages of projects. Digital twins can speed up project delivery and reduce construction costs, which are already significantly lower in India compared to other countries, such as those in the West, says Akhil. He highlights the growing use of Open BIM (building information modelling), which offers an open standard and non-proprietary system, and its use in the transition from 2D to 3D workflows. Akhil also outlines how his company’s labour forces use virtual reality (VR) to practice the assembly of components and parts, and how site engineers use VR to conduct virtual site visits and use augmented reality (AR) to support them on-site.

Naseera Razak, managing director and principal at Gensler in Bangalore, explains some of the digital technology her company uses. BIM (the company uses Revit) along with software plug-ins has become a cohesive platform from concept design to construction drawings, she says. She contrasts this with the early years of her career, when drafting, rendering and generating views used separate programs rather than a single platform housing all the information. She also highlights the importance of BIM for clash detection – the identification and resolution of conflicts between different elements or components in a construction project. Naseera also notes that across the industry, clients are increasingly requiring BIM to be included as a deliverable by design consultants and general contractors. Today, the integration of BIM with project management software such as BIM 360 further enhances collaboration and project efficiency, she says.

The use of VR in the design process, starting from conceptual design phase, allows clients to experience space volumetrically and relate to the differences between plans, elevations and 3D representations. This is important because most clients do not have a design background, and this understanding means they are able to make informed decisions and give approvals quickly about what they want, says Naseera.

Software, such OpenSpace, which captures 360° photos and videos of construction sites, allows progress to be viewed remotely and proved particularly invaluable during COVID-19 when designers could not visit sites, say Naseera.

Adoption of digital technologies varies around the world

‘There is a real spectrum of people using technology in incredibly innovative and powerful ways, but this is not being spread around equally’, says Andrew Knight, global AI, data and tech lead at RICS. Some of the technologies being used include data analytics for benchmarking, BIM (as already mentioned), drones and GIS to measure sites, digital technologies for whole life carbon assessment and the use of AI in the quantity take-off process to help cost engineers and quantity surveyors accurately calculate quantities and cost. A particular application in the US and Europe on larger projects is the use of machine learning to assist with scheduling and project management, says Andrew. This is particularly useful on large projects, where rescheduling and optimisation of the task order is often necessary, he adds. For more information on the use of digital technologies across the built and natural environment, please see the latest RICS Tech Partner Programme Survey.

Managing technology in the industry

‘The challenge is not a lack of technology, but rather ensuring we effectively manage the change process to revolutionise productivity and performance’, says Andrew. It is down to management and leadership to ensure we can take advantage of the technology, says Andrew. He points out that technology is not replacing skill sets but augmenting them. Naseera agrees, ‘technology will never replace humans. Rather, it enables people to focus on activities they are excited and passionate about while leaving mundane tasks to technology’. She also believes that changing mindsets, particularly among those used to more traditional methods, is key to wider adoption.

Naseera suggests that India’s young population offers a significant resource and it is up to the industry to harness their potential. India has a huge opportunity to develop skilled labour without requiring substantial capital investment, apart from software, says Akhil. He cites the example of using VR and AR for training purposes instead of creating physical training labs.

India has one of the largest construction markets in the world and provides the   perfect place to trial new technology, says Akhil. This volume also provides an ideal opportunity to train labour at scale, he adds.