Where Have India’s Top Engineers Gone? Why Construction Needs a Rethink—Now
Anyone I meet nowadays who works in the construction sector faces the same challenge as I do: the increasingly scarce number of qualified engineers on the job market. I did a bit of research on that and found that the reasons are mutlipronged.
Top students are walking away from construction
The reasons are systemic, and if we don’t address them now, we’ll lose another generation of engineering talent.
- India produces over 5 million engineers every year. You’d think the booming construction industry would have its pick of the best. But it doesn’t. Of the 71 million people employed in construction, only 19% are skilled employees.
Source - Civil engineering programs are shrinking. In Karnataka alone, civil and mechanical engineering intake dropped by 2,670 seats in 2023–24. Computer science, meanwhile, keeps growing.
Source - Across the country, admission rates in mechanical and civil engineering (the core disciplines for the construction sector) are at 46% and 48% respectively, while computer science & electronics programmes exceed 60%.
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The Middle East Is Poaching our Best Engineers
We’re not just losing talent to tech and finance. We’re losing it to the Gulf.
Saudi Arabia’s Vision 2030 program is reshaping the region, and South Asian engineers are in high demand. Projects like NEOM and The Red Sea are offering long-term career paths and tax-free salaries, often 2–3x higher than in India.
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There are over 2.5 million Indian expats in Saudi Arabia today. Many are experienced construction professionals who chose professionalism, clarity, and compensation abroad because they didn’t find it at home.
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India Builds Big. But Where Are the Builders?
Despite the scale of development in India, hardly 3-4 contractors consistently operate at an international level in the building sector.
That’s it.
Even Sri Lanka, a market a fraction of India’s, hosts more contractors able to deliver turnkey building projects on schedule with international quality standards. In India, those few global contractors increasingly avoid building projects less than 500 Cr. Others are still overly dependent on labor intensive construction practices, with little mechanization and poor management.
Instead, it’s the infrastructure sector that has attracted serious capital and consistent talent—because it offers scale, standardized procurement practices, and long-term visibility. The building sector, by contrast, is still seen as fragmented, prone to approval-induced delays, and low margin.
The Problem: How We Build, Operate and Lead Companies
We don’t just have a talent gap. We have an industry leadership gap.
The core issue lies in how developers and investors define value. There’s often a willingness to spend on high-end finishes, but not on the people, processes, and tools—like experienced consultants, project leaders, or digital systems like BIM that actually ensure smooth delivery. What gets prioritised? Capital expenditure reduction. What gets sidelined? Lifecycle cost and performance. Margins are squeezed at every level. The people tasked with delivering complex, high-value assets aren’t empowered; they’re managed down.
Too many firms are structured for short-term project delivery, not long-term capacity building. They hire based on salary, not expertise. There’s little investment in people, systems, and long-term growth.
This leads to a broader race to the bottom. Projects are awarded to the lowest bidder with no premium given to track record or capability. This is true for both consultants and contractors. In such an environment, quality is devalued. Professionalism takes a back seat. Standards drop.
The damage is then reinforced by one-sided contracts, poor governance, and weak contract management. Delayed payments and unpaid invoices are common. And when disputes arise, India’s ineffective arbitration framework means conflicts drag on unresolved, forcing contractors to absorb losses or write off payments entirely.
All of this leads to an industry plagued by low margins and high risk that deters both serious talent and meaningful investment.
Only developers and financial institutions can change that paradigm. But with the industry as fragmented as it is, no one makes the first move, and the industry stagnates.
Why the Best Engineers Stay Away
They see the industry for what it is:
- No clear career path
- Minimal professional development
- Weak recognition and branding
- Workplace culture that hasn’t evolved
- Governance that varies wildly from site to site
At the same time, construction remains India’s second-largest employment sector, with over 71 million workers, 81% of whom are unskilled.
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By 2025, demand is expected to reach 100 million workers. But we’re not building the firms or the careers to match.
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In addition to this, construction engineer pay lags behind pay in more attractive industries. According to Salary Expert, construction engineers are typically paid 25-30% less than software engineers.
What Needs to
- Think long-term
We need to stop building firms around projects and start building firms with a future. That means retaining knowledge, nurturing people, and planning for generational leadership. - Reverse the race to the bottom
Clients, developers and investors must award based on capability, not just the lowest price. Bidding should include quality, capacity, and safety standards. - Govern better
The building sector needs the planning rigour, digital tools, and accountability of infrastructure. Standardise. Professionalise. Raise the bar. - Offer real careers
Engineers need progression, not just placement. They deserve a path, from graduate to Director, with real timelines and structured growth. We need industry-wide investment in people. - Reform contracting and dispute resolution
Govern contractual fairness. Implement balanced terms, enforce payment timelines, and invest in contract-management skills. Establish swift, fair dispute-resolution mechanisms. - Make it aspirational
Construction shapes cities, lives, and futures. Let’s talk about that. Let’s show engineers what’s at stake and why it matters. Bring students on-site. Sponsor research. Create visibility early. The next generation needs to experience construction, not just read about it.
Final Word
Construction is critical to India’s future. But the way we build companies will decide whether we attract the people who can lead it.We don’t just need more engineers. We need to give the best ones a reason to stay.