India’s construction industry is expected to grow by 7.1% in 2025, one of the fastest rates in the India, Middle East, and Africa (IMEA) region. According to a report by Marsh, a global insurance broker and risk advisor, this growth will require better risk and insurance strategies.
The report, Global Construction Risk Review 2025, highlights the most pressing challenges for the global construction industry, including inflation and economic ups and downs (28.6%), rising material costs (16%), problems with bidding and contracts (13%), and workforce challenges (10.8%). Cyber threats and supply chain problems are also growing concerns.
To handle these risks, the report suggests using real-time risk checks, adjusting bids for inflation, and using predictive tools to plan projects better. India’s insurance sector is changing quickly to keep up with the construction boom, and the need for stronger risk engineering, contractor due diligence, and project contingency planning becomes non-negotiable.
Key Recommendations:
– Adopt global best practices in contract structuring, supplier evaluation, and risk transfer mechanisms
– Use data-driven insights to inform construction risk pricing
– Implement stronger risk engineering, contractor due diligence, and project contingency planning
– Enhance people management and digital resilience tools to reduce disruptions and attrition
Expert Insights:
– “The construction industry in India significantly contributes to GDP growth… By building upon data-driven insights and a deep understanding of the Indian market, we can help construction firms make informed decisions, optimise their insurance programs, and build resilience against emerging threats,” said Sanjay Kedia, Chief Executive of Marsh McLennan India and President & Chief Executive of Marsh India.
– “The Indian construction industry stands at a transformative moment, with unprecedented opportunities for growth driven by ambitious infrastructure development and a burgeoning economy,” said Abhishek Shankar, Senior Vice President & Practice Leader – Construction, Marsh India.
Source and Image Courtesy: livemint.com
