Mumbai, 29 July, 2025 – Marsh, the world’s leading insurance broker and risk advisor and a business of Marsh McLennan (NYSE:MMC), has released key findings from its Global Construction Risk Review 2025 which reveals the most pressing challenges faced in the global construction industry, with direct implications for India’s rapidly expanding infrastructure sector.
Global data expects the Indian construction industry is expected to grow by 7.1% in 2025, one of the fastest rates in the IMEA region. This growth brings many opportunities but also requires better risk and insurance strategies. Big investments in energy, highways, smart cities, and industrial corridors have made India an important market for global insurers and reinsurers. Globally, the major risks include inflation and economic ups and downs (28.6%), rising material costs (16%), problems with bidding and contracts (13%), and workforce challenges like hiring and keeping workers (10.8%). Cyber threats and supply chain problems are also growing concerns. To handle these risks, the report suggests using real-time risk checks, adjusting bids for inflation, and using predictive tools to plan projects better. India’s insurance sector is changing fast to keep up with this construction boom.
As India’s project pipeline grows, the need for stronger risk engineering, contractor due diligence, and project contingency planning becomes non-negotiable. Globally, firms are using a blend of historical and real-time data to inform construction risk pricing—India’s adoption of such tools remains an untapped opportunity. By adopting global best practices in contract structuring, supplier evaluation, and risk transfer mechanisms, Indian firms can significantly boost risk management outcomes. A maturing insurance ecosystem that offers protection across surety, cyber, and DSU risk will also enhance investor and lender confidence. At the workforce level, improved people management and digital resilience tools will reduce disruptions and attrition.
Commenting on the report, Sanjay Kedia, Chief Executive Officer, Marsh McLennan India President & CEO, Marsh India, said: “The construction industry in India significantly contributes to GDP growth. This sector’s contribution is crucial for overall economic development, generating investment opportunities across various related sectors. The trends we are seeing in managing financial risk, surety, climate and sustainability and cyber risk emphasise the importance of working with a trusted risk advisor who can provide tailored solutions and strategic guidance. By building upon data-driven insights and a deep understanding of the Indian market, we can help construction firms make informed decisions, optimize their insurance programs, and build resilience against emerging threats.”
Abhishek Shankar, Senior Vice President & Practice Leader Construction, Marsh India, said: “The Indian construction industry stands at a transformative moment, with unprecedented opportunities for growth driven by ambitious infrastructure development and a burgeoning economy. However, this growth is intertwined with a complex web of risks, from economic uncertainties, climate and sustainability and supply chain vulnerabilities which eventually may impact project profitability and timely completion and return on investments. To navigate this landscape successfully, construction firms must adopt a proactive and data-driven approach to risk management, ensuring they are well-positioned to capitalize on the opportunities while safeguarding their projects and investments.”