L&T Chief Warns of Labour Crunch in Construction
ECONOMY & POLICY

L&T Chief Warns of Labour Crunch in Construction

Larsen & Toubro (L&T) chairman and managing director SN Subrahmanyan has raised concerns over a severe labour shortage in India’s construction sector, citing workers’ reluctance to migrate as a key challenge. Speaking at the CII South Global Linkages summit in Chennai, he noted that while global economies face heavy migration, India struggles with the opposite issue.

“Labourers are unwilling to move for work due to comfort factors and the availability of various welfare schemes,” he said. Despite L&T employing 400,000 labourers at any given time, labour attrition occurs three to four times a year, requiring the company to hire nearly 1.6 million workers annually.

To manage this, L&T maintains a database of four million workers, tracking their details for quick deployment. However, mobilizing such a vast workforce remains a daunting task. The company has even established a dedicated ‘HR for Labour’ department to address the issue.

Subrahmanyan pointed to government schemes like Jan Dhan accounts, direct benefit transfers, Garib Kalyan Yojana, and MNREGA as factors discouraging migration. “People are finding jobs locally and are not willing to travel for work,” he said, citing a major industrial project in Western India that requires 50,000 labourers.

The labour crunch is delaying critical infrastructure projects, including roads and power plants. Meanwhile, a booming construction sector in West Asia is luring Indian workers with salaries three to four times higher. L&T’s order book in the region stands at $22 billion and is expected to reach $30 billion soon, with ongoing projects in Saudi Arabia, Oman, Qatar, and Kuwait.

Even engineers and white-collar professionals are reluctant to relocate, Subrahmanyan noted. “When I joined L&T in 1983, my boss sent me from Chennai to Delhi. Today, if I ask someone to do the same, they just say bye,” he remarked, adding that the IT sector faces an even greater resistance to in-office work.

To combat the labour crisis, L&T has invested in skill development, setting up eight dedicated training institutes and five more in collaboration with the government. These centers train 35,000 workers annually in trades like masonry, welding, and electrical work. “We don’t bond them—they are free to work anywhere. But at least we are building the workforce,” Subrahmanyan said.

With India’s infrastructure ambitions growing, tackling this labour challenge will be crucial for sustained economic growth.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

Larsen & Toubro (L&T) chairman and managing director SN Subrahmanyan has raised concerns over a severe labour shortage in India’s construction sector, citing workers’ reluctance to migrate as a key challenge. Speaking at the CII South Global Linkages summit in Chennai, he noted that while global economies face heavy migration, India struggles with the opposite issue. “Labourers are unwilling to move for work due to comfort factors and the availability of various welfare schemes,” he said. Despite L&T employing 400,000 labourers at any given time, labour attrition occurs three to four times a year, requiring the company to hire nearly 1.6 million workers annually. To manage this, L&T maintains a database of four million workers, tracking their details for quick deployment. However, mobilizing such a vast workforce remains a daunting task. The company has even established a dedicated ‘HR for Labour’ department to address the issue. Subrahmanyan pointed to government schemes like Jan Dhan accounts, direct benefit transfers, Garib Kalyan Yojana, and MNREGA as factors discouraging migration. “People are finding jobs locally and are not willing to travel for work,” he said, citing a major industrial project in Western India that requires 50,000 labourers. The labour crunch is delaying critical infrastructure projects, including roads and power plants. Meanwhile, a booming construction sector in West Asia is luring Indian workers with salaries three to four times higher. L&T’s order book in the region stands at $22 billion and is expected to reach $30 billion soon, with ongoing projects in Saudi Arabia, Oman, Qatar, and Kuwait. Even engineers and white-collar professionals are reluctant to relocate, Subrahmanyan noted. “When I joined L&T in 1983, my boss sent me from Chennai to Delhi. Today, if I ask someone to do the same, they just say bye,” he remarked, adding that the IT sector faces an even greater resistance to in-office work. To combat the labour crisis, L&T has invested in skill development, setting up eight dedicated training institutes and five more in collaboration with the government. These centers train 35,000 workers annually in trades like masonry, welding, and electrical work. “We don’t bond them—they are free to work anywhere. But at least we are building the workforce,” Subrahmanyan said. With India’s infrastructure ambitions growing, tackling this labour challenge will be crucial for sustained economic growth.

Next Story
Real Estate

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Next Story
Infrastructure Transport

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Next Story
Infrastructure Transport

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?