Adi Godrej,chairman of Godrej group said in his latest press conference in Mumbai that country is facing great shortage of labour.He in his conference stressed upon the rapid reduction of labours in cities.The construction industry is in problem now a days due to non availability of labour. According to World Bank report the country will face labour shortage if the growth rate remains to be medium. Incase of high growth the labour shortage may rise upto 55-60 percent. The successful response of national employment guarantee programme has reduced labour migration to cities in search of work. It has resulted into increase of labour cost and less availability.
To tackle with this situation new technology has to be introduced. Most of the real estate company owners believe that along with excellent manpower focus should be on timely execution. Banks have reduced their role making the availability of capital difficult. In the present situation most of the construction companies are forced to take financial aid from other sources. The investors see India as a fluctuating market therefore the capital cost is high. The long time period for approval and illegal functioning has made investors to back out from investing capital in Indian market. According to Anuj Puri the moment this problem gets rectified the capital cost will surely be lowered down.
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