The L1 Trap

27 May 2026 CW Team

If global shocks explain the pressure on India’s infrastructure sector, negative bidding explains its fragility. India’s public procurement system continues to rely heavily on the L1 (lowest bidder) model, where contracts are awarded primarily on the basis of the lowest cost. In theory, this approach promotes transparency and cost-efficiency. In practice, however, it often distorts pricing and undermines project viability.

What is negative bidding?

Negative bidding refers to contractors quoting 15-30 per cent below project estimates to secure contracts.

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Real Estate

27 May 2026

India’s Real Estate Cycle Needs More Than Capital. It Needs Predictability

India's real-estate cycle is in a moment most analysts describe as once in a generation. Capital is moving. Launches are accelerating. Institutional appetite – domestic and cross-border – has rarely been stronger. The pipeline is real. The ambition is genuine. And for the first time in years, all the conditions for a sustained growth phase appear to be in place.Yet capital alone has never built a project. Land alone has never delivered an outcome. The developers who will define this cycle are not those with the deepest pockets – they are the ones who have built the systems to execute on ..

Wanted: Missing Inputs

Facing cost headwinds, India’s material handling equipment industry is looking to localise a long list of components.Geopolitical turbulence in the Middle East has created tangible cost headwinds for the material handling equipment industry, compelling players to recalibrate their operations and take a long, hard look at design, with an eye on ushering in manufacturing and supply chain efficiencies, by means of greater localisation, supply chain adjustments or otherwise. Construction World’s analysis of the cost impact and remedial measures throws up ample opportunities for component maker..

Power of a Million Minds

India’s commercial real estate landscape is undergoing a structural transition. While Bengaluru, Mumbai and Hyderabad continue to dominate office demand, increasing occupancy costs and infrastructure pressures are prompting enterprises to evaluate alternative markets capable of supporting long-term growth.Ahmedabad is increasingly positioning itself within this changing geography of investment.Million Minds Tech City aligns with Gujarat’s ambitions under the IT and ITES Policy 2022–2027 and the state’s broader strategy to attract technology-led investments and Global Capability Centres..