Brick & Bolt on Challenges, expansion and the road ahead

India’s construction sector needs a tech-driven, transparent overhaul’: Brick & Bolt on Challenges, expansion and the road ahead. (Image: Pixaby)

The Indian construction industry contributes nearly 9% to the GDP and employs more than 71 million people, yet it continues to grapple with regulatory, labour and technological challenges. In this exclusive interview, Jayesh Rajpurohit – Co-Founder and CEO of Brick & Bolt – one of India’s tech-driven construction companies, discusses the industry’s pain points, the rising cost of materials, their expansion roadmap and how AI and sustainability are transforming the sector.

Q1. What are the major challenges that the construction industry faces in India?

India’s construction industry is undoubtedly growing, driven by government initiatives, rising urbanisation, and increasing demand for housing and industrial infrastructure. However, several longstanding issues continue to stall its full potential.

Despite its scale and contribution to the economy, the sector suffers from a lack of transparency, long delays, and in some regions, stagnation—especially post-COVID. Globally, large-scale projects overshoot their budget by up to 80% and are delayed by about 20%, as per a McKinsey report. In India, this is worsened by fragmented workflows, bureaucratic bottlenecks, and land acquisition delays.

Take Surat, for instance—construction project approvals dropped by over 23%, from 724 in FY 2022–23 to just 553 in FY 2024–25, signalling declining investor confidence.

Urban residential projects in metros now face average delays exceeding 36 months. Excessive red tape in the pre-construction phase leads to massive financial losses for developers, and the problem is spilling over into Tier 2 cities.

The adoption of new-age technologies remains sluggish, and digital project management tools are yet to be fully mainstreamed.

Systemic reforms are needed—digitised approvals, standardised execution practices, and transparent pricing models are critical to building a more resilient industry.

Q2. Your comment on regulatory hurdles and skilled labour shortages

Regulatory complexities and a skilled labour deficit are two of the most pressing challenges today. Approvals—whether zoning, environmental, or municipal—can take months or even years. It slows everything down. The workforce issue is equally dire. About 81% of India’s 71 million construction workers were unskilled as of late 2023. This stems from insufficient vocational training, poor working conditions, and disjointed rural-to-urban migration.

A National Skill Development Corporation (NSDC) report estimates that India will require 45 million more skilled construction workers by 2030. Project timelines and build quality both suffer when skilled masons, electricians, or supervisors are missing. Execution errors become frequent, leading to inflated costs and missed deadlines.

Government initiatives like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and industry-led efforts through Construction Skill Development Councils are trying to plug the gap.

On the regulatory front, e-permit systems and AI-powered compliance tools are being slowly adopted, but we need faster, nationwide rollout. Upskilling workers and streamlining permitting systems are absolutely essential to unlock the sector’s next phase of growth.

Q3. How are rising material costs affecting the industry?

The surge in material costs over the last two years has been one of the biggest threats to both project viability and housing affordability.

Prices for essential materials like cement and steel have jumped significantly. “Cement has risen from Rs 350–400 per bag to Rs 440–Rs 460, and steel prices have escalated from Rs 55,000–Rs 60,000 per tonne to Rs 64,000–Rs 73,000.

These increases squeeze contractor margins and raise homeowner costs. For a 1,000–1,200 sq ft residential unit, even a 10% spike in material prices can mean a Rs 2–4 lakh increase in project cost.

The volatility undermines project planning and often forces delays or contract renegotiations. To safeguard developers and restore consumer confidence, policy support is essential—especially through regulatory mechanisms that ensure price transparency and supply stability.

Q4. You have reached a scale of 8,000+ homes in 10+ cities. What is your expansion plan, and how much investment are you planning in the next five years?

With over 8,000 homes built across 10 cities, Brick & Bolt is eyeing rapid expansion. India’s housing shortage, currently over 29 million units, presents a massive opportunity—especially in Tier 2 and Tier 3 cities. Over 200 million Indians are projected to move to urban areas by 2030.

The company plans to launch new experience centres in Gurgaon and Chennai and expand operations to Jaipur, Coimbatore, Kolkata, Lucknow, and Ahmedabad. Our goal is to be active in 25+ cities and deliver over 25,000 new units. We’re also scaling up our commercial and joint venture capabilities.

They envision the next five years as a period of technological disruption in the industry.

Brick & Bolt is not just building homes—we’re transforming the construction experience. By leveraging technology, we’re creating a trusted, standardised ecosystem that redefines how homes are built in India.

Q5. Shed light on the role of technology (AI) in modernising the construction industry

Artificial Intelligence (AI) is gradually becoming a game-changer in construction. AI helps with everything from automated blueprint analysis and 3D site visualisation to risk detection and real-time monitoring,” the spokesperson explained. Drones and AI-powered sensors provide live updates on material usage, site safety, and progress tracking. These tools reduce manual errors and make resource allocation more efficient.

AI is also aiding procurement. Price trend predictions help lock in better material rates. On the client side, AI-powered virtual assistants help customers track milestones, manage documents, and resolve queries in real-time.

Brick & Bolt has been at the forefront of this technological shift. We believe AI will be the foundation of a smarter, faster, and more predictable construction process in India.

Q6. Comment on the role of sustainability and green building practices in transforming the construction sector

Sustainability is no longer optional—it’s becoming integral to construction in India. As of 2023, the Indian Green Building Council (IGBC) has certified more than 7,000 green buildings, covering 7 billion sq ft. But this is still a small slice of what’s being built.

Green practices include rainwater harvesting, solar panels, low-VOC materials, and energy-efficient HVAC systems. Government codes like the Energy Conservation Building Code (ECBC) and incentives for IGBC/LEED-certified buildings are encouraging sustainable choices.

Today’s homebuyers are also driving change. A 2023 Knight Frank report showed over 60% of buyers under 40 prefer energy-efficient homes, even at a premium. But misconceptions persist. There’s still a belief that green buildings are more expensive. In reality, lifecycle cost analysis often reveals 20–30% lower operating costs over time.

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