Growth 2.0 will be about leveraging our ‘Well begun is half done’ scenario to attain the ‘All’s well that ends well’ state.
‘Well begun is half done’ – a phrase we have often heard in drama dialogues, political commentaries, academic literature, and in boardroom discussions. Indeed, a good start is quite crucial in gathering the momentum required to drive any agenda, project or group to its purpose and goals. In terms of achieving the objectives for ‘Growth’ – a term that has become very common and significant at the same time – organizations across the globe are initiating various policies and programs across functions. In my opinion, the idea of growth in itself is a major start for any entity. When we think of growth with an intent, our actions correspond to that idea to create numerous possibilities that act as catalysts in our growth journey. However, there is no denying the fact that the roadmap for growth needs to be conceptualized, crystallized, and actualized after consideration of several factors and influencers. And this consideration will eventually determine if the growth journey we wish to embark on is practical and sustainable.
In this context, the construction sector in India received a significant push after the announcement of several regulatory and legal reforms by the current government in its first term. The country has witnessed monumental changes in the regulatory, tax and business regime after the implementation of landmark policies such as RERA and GST. Such developments have worked in favor of the construction industry and induced a much needed transparency in procedures, thereby boosting the investors’ confidence in India. Owing to such measures, the Indian Real Estate sector is expected to reach a market size of US$ 180 billion by 2020 and US$ 1 trillion by 2030*. The contribution of Real Estate to the country’s GDP is expected to be approximately 13%.* India’s construction industry is expected to grow at an annual average of 6.6% between 2019 and 2028*. Policy reforms have set the foundation for growth of the construction sector in the country, and we can term this phase in governance as Growth 1.0. The challenge that lies ahead of the government is to leverage the potential of the policies by transforming the idea into actionable, and therefore, script the Growth 2.0 story.
The magnitude and scale of the government plans such as Housing for All by 2022 and AMRUT scheme (Atal Mission for Rejuvenation and Urban Transformation) is huge. Besides, the government has set the aspirations of building 60 lakh rural houses in the next one year. To look achievable, such targets demand complementary collaborations between all stakeholders across the construction value chain.
Moreover, the government has given a massive push to the infrastructure sector by allocating Rs 4.56 lakh crore (US$ 63.20 billion) for the sector*. At this scale, partnerships and joint-ventures which can enhance project implementation must be encouraged for specialized methods, meeting timelines, and fulfilling promises. Furthermore, an investment of US$ 31.7 billion has been proposed by 99 cities under the Smart City initiative*. Construction sector in India is one of the least digitized industries, and to change the game from here, technology-driven approach must become a priority when we have the mammoth Smart Cities Mission at hand. Investments have, indeed, been encouraging, but the next phase must focus on optimal and prudent utilization of the funds to create productive value and realize true potential of the growth program.
I believe that in the entire quest for growth and progression, the significant concept of ‘sustainability’ is being lost. The recent incidents of corruption and corporate governance failures emerging from India Inc. have alluded to the fact that while ambitions are high, the approach is faulty and needs major corrections at several levels. Corporate scams have become commonplace with some serious instances being mapped to major banks and financial institutions, real estate developers and several other key sectors of the industry. These events are concerning, and of course, potential hurdles in the growth journey for organizations across sectors as well as the national economy at large. In specific reference to the real estate sector in the country, government and industry estimates have revealed that over five lakh apartments in Noida, Gurugram and their adjoining clusters are either unfinished or have not been handed over, long after the expiry of the delivery deadlines. Many developers in the region had to shut their operations down due to poor governance practices, inefficient management and strategies, inept planning and inaccurate estimation. Considering a holistic view of the Corporate Governance inadequacies in the last few years, it would be tough to pick a specific trend. However, what we do see is a lack of ethical standards and effective oversight.
Accountability, financial discipline and accuracy of estimation can pave way for sustained growth at a desired pace. Ambitious plans must also take ethical standards along in the stride to ensure financial and reputational security. A stable environment with robust, systematic, and specialized procedures will make the industry flourish. Additionally, risk mitigation plans and legal advisory must be in place to combat market volatility, business disruptions, and legal contradictions.
Efficient project management is the kinpin of Growth 2.0 as it is pivoted around developing capabilities in minimizing cost, enhancing quality and maximizing the value of time for the construction projects. Successful projects all around can have a huge cumulative impact not only on the industry but also on the macro-economics of the country. Project Management enterprises, today, are enuring growth for the project owners by delivering specifically what was agreed to without any deviations by proactively managing scope and formulating analytical reports on a periodic basis to provide an idea on the progress.
For example, the active role of Turner Project Management India in the edifice of several landmark projects such as the Statue of Unity and the Kempegowda International Airport Expansion- T2, Bengaluru is testimony to the fact that the government understands the value that a proficient project management consultant can bring to any development program. Owing to the casual Indian attitude towards safety and health, local conditions of labour, and the pure magnitude of growth, our local challenges and opportunities are quite different from the rest of the world. Project Management firms must have local project management expertise along with global experience that can help organizations and governments effectively resolve typical challenges. Local and international partnerships can help any project owner apply the learning and experiences from global projects to effectively counter similar local issues pertaining to programme controls and management.
The prospective bounties for the construction stakeholders in the country are massively rewarding, but the risks of failing to adapt and adopt are even bigger. As the Indian market looks towards accomplishing Growth 2.0, it must be ready to grow in transformational ways that can strike a balance between ambitious approach and ethical governance. To conclude, it would be apt to quote Rudyard Kipling who, in his legendary work ‘If’, has very beautifully penned down the formula for success through the concept of being determined and poised at the same time:
“…If you can dream—and not make dreams your master … Yours is the Earth and everything that's in it…”
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