Climate risks are emerging as a major challenge for India’s construction and infrastructure sector as rapid investment in transport, energy, housing and digital infrastructure coincides with rising heat and flooding. These pressures are affecting projects across the lifecycle, from design and construction to long-term operations.

Flooding remains one of the sector’s most disruptive risks, causing physical damage, project delays, supply chain disruption and higher repair costs. Construction sites are especially vulnerable due to unfinished structures, temporary works and weak drainage during heavy rainfall.

Extreme heat is also intensifying risks by affecting labour productivity, worker safety and material performance. Heat stress can lead to work stoppages, accidents, delays and faster deterioration of concrete, asphalt and electrical systems.

Aon also points to interconnected risks across transport, power and logistics networks, as well as a widening protection gap, with many climate-related losses remaining uninsured. The sector will need stronger climate assessments, better design standards and targeted risk transfer solutions to improve resilience.