SHRIRAM PROPERTIES TURNS TO ROBOTS: THE INEVITABLE QUESTION AND MY LONG-STANDING ANSWER
Thursday, October 3, 2026
NEWS ITEM
Shriram Properties Turns to Robots as Labour Shortage Bites
https://www.thehindubusinessline.com/news/real-estate/shriram-properties-turns-to-robots-as-labour-shortage-bites/article71536682.ece
— The Hindu Business Line
Brief Description: As Indian construction and real estate firms face acute labour shortages, Shriram Properties has begun deploying robotic systems to automate repetitive construction tasks. This development reflects the broader challenge confronting Indian manufacturing and construction: where will workers come from when automation is cheaper and more reliable than human labour?
MY TAKE
When I read this news about Shriram Properties turning to robots to combat labour shortages, I found myself both vindicated and impatient. For nearly a decade, I have been sounding the alarm about automation's inevitability and offering a concrete solution: systematic skilling and training through Industrial Training Institutes (ITIs) awarding "B.Skill" (Bachelor of Skill) degrees.
Shriram Properties is not alone in this pivot. Across construction, manufacturing, logistics, and real estate, Indian businesses face a twin crisis:
- Labour shortage: Workers are unavailable, migrating to cities in search of white-collar jobs, or unwilling to take on hard, dirty, and dangerous construction work
- Wage pressure: Those who do come demand ever-higher wages, eroding profit margins
Faced with this squeeze, industrialists are doing what industrialists everywhere do: they are automating. Robots cost the same as annual wages for a semi-skilled worker in many countries. And they never ask for a raise.
THE PROBLEM I IDENTIFIED
In 2018, I documented the robot invasion in my blog "#Robots #AI #Economy #DigitalIndia"
(http://myblogepage.blogspot.com/2018/04/robots-ai-economy-digitalindia.html):
"Robots are far from invading India's factories, even though their installation rate is steadily rising... In India, we have still not reached that kind of a PAYBACK PERIOD, but Indian industrialists are acutely conscious of the following advantages of robots:
• Robots which work 24 hours/day and do not ask for a salary • Robots that do not "go slow" or go on a strike • Robots that do not demand "Quotas / Reservations" • Robots that do not take holidays or take "Sick Leave" • Robots that do not resign / demand promotion • Robots that do not complain against unpleasant work • Robots that do not get tired and need rest • Robots that do not demand "Overtime Pay" @ 200% of normal • Robots that perfectly co-ordinate their tasks with other robots • Robots that willingly "retire" at any age, whenever required • Robots that do not demand Unemployment/Retirement Benefits"
That was 8 years ago. Today, as construction firms like Shriram deploy robots to lay bricks, paint walls, and perform dangerous tasks on-site, this list reads less like satire and more like prophecy.
WHAT SHOULD HAVE HAPPENED INSTEAD
The tragedy is not that robots are being deployed. Automation is inevitable and, properly managed, can improve productivity and safety. The tragedy is that we have not built the pipeline of skilled workers who can work WITH robots, maintain them, operate them, and transition into new roles that automation creates.
In 2021, I laid out the blueprint in my blog "National Skills University: Virtual is the Only Way"
(http://myblogepage.blogspot.com/2021/04/national-skills-university-virtual-is.html).
I proposed: A virtual, federated National Skills University that would:
• Identify skills demanded by industries and publish a "Who Wants What Skill" matrix • Allow ITIs, colleges, companies, and platforms to upload training content in text, video, AR/VR formats • Award standardized, industry-recognized B.Skill degrees at levels: Semi-Skilled, Skilled, Highly Skilled, Master Craftsman • Conduct online certification exams with digital credentials • Operate with minimal central overhead by leveraging private content creators under CSR obligations
The cost would be negligible. The reach would be massive—potentially millions of youth could upskill without leaving their villages. ITIs would become certification hubs rather than mere classroom providers.
Instead, what happened? Piecemeal initiatives. PMKVY. PPP models. Well-intentioned but fragmented. By the time Shriram Properties decides to deploy robots because skilled labour is unavailable, it is already too late to prevent the disruption.
THE REAL ISSUE: AUTOMATION WITHOUT ALTERNATIVES
In my 2016 blog "Automation is Inescapable"
(http://myblogepage.blogspot.com/2016/11/automation-is-inescapable.html), I asked the hard question:
"NDA government is trying hard to raise share of Manufacturing in our GDP, from current 16% to 25%...
It is hoped that such a transition will enable us to provide jobs to those 12 million youngsters, joining our "Army of Unemployed", each year.
But what if that increase in "Manufacturing" comes about through vastly increased "Automation"?
In that case, instead of being able to provide jobs to those 12 million, we may end up laying off / retrenching, even those who are currently engaged in "Manufacturing"!"
That question has become urgent. Construction, which has traditionally absorbed millions of semi-skilled and unskilled workers, is now automating. If we do not have a credible, accessible, large-scale skilling system in place, we will face massive unemployment disguised as "labour shortage."
WHY ITIs AWARDING B.SKILL DEGREES MATTERS
The key insight is this: SKILLS MUST BE DEMOCRATIZED, RECOGNIZED, AND VALUED AT PAR WITH TRADITIONAL DEGREES.
Today, an ITI certificate is seen as a consolation prize for those who "could not make it" in academic streams. This is a catastrophic cultural error. A skilled electrician, welder, plumber, or construction technician should earn as much respect—and salary—as a commerce graduate.
By awarding B.Skill (Bachelor of Skill) degrees, we would:
• Restore dignity to vocational training: A "B.Skill in Construction Technology" sounds equivalent to "B.Com"
• Create portable credentials: A worker trained in robotics-assisted construction in Gujarat can migrate to Tamil Nadu with recognized qualifications
• Signal employer demand: Industries publish the "Who Wants What Skill" matrix; youth can see real job prospects before enrolling
• Enable continuous upskilling: A worker can earn a B.Skill, work for 2 years, then return for an Advanced B.Skill or move into robot maintenance
• Attract private investment: If ITIs are certification hubs rather than standalone training centres, private companies, trade associations, and international partners will eagerly develop content under CSR or commercial models
THREE-PHASE TRAINING FRAMEWORK
I have long advocated for a structured, three-phase approach to skilling, documented in my blog "On the Job Training: a Vindication"
(http://myblogepage.blogspot.com/2023/02/on-job-training-vindication.html):
PHASE 1 – EMPOWERING (3 years)
- Objective: Impart Skills in Industrial Training Institutes
- Content: Entire range of manufacturing, construction, and commercial skills
- Stipend: Rs 1,000 per month (DBT to trainee's Jan Dhan account)
- Providers: Government ITIs, private SPVs, industry-led training centers
- Outcome: B.Skill (Semi-Skilled) or B.Skill (Skilled) degree
PHASE 2 – EXPERIENCING (3 years)
- Objective: Provide on-the-job experience in Industrial / Commercial Establishments
- Duration: 3 years as apprentice in real work environment
- Starting Stipend: Minimum semi-skilled wages (approx ₹6,000 per month)
- Annual Increment: 5%
- Cost Sharing: 75% by employer, 25% by government (DBT)
- Outcome: B.Skill (Advanced/Highly Skilled) certification + work experience
PHASE 3 – SELF-DEPENDENCE (Ongoing)
- Objective: Working in gainful employment or self-employment
- Option A: Full-time employment in industry/commerce
- Option B: Self-employment with MUDRA or other business loans
- Tax benefit: If self-employed, exempt from personal income tax for 10 years
- Outcome: Economic independence, livelihood security
SKILLS MATRIX: WHAT CONSTRUCTION AND INDUSTRY NEED
Manufacturing Industry Skills (Current & Traditional): • Welding, Machining, CNC Operations • Electrical, Electronics, Instrumentation • Plumbing, HVAC, Construction Trades • Automotive, Heavy Equipment Operation
Commercial/Emerging Sector Skills: • E-Commerce, Fintech, Payment Systems • Agriculture Processing, Cold Chains • BPO, Telecom, Logistics • Robotics, IoT, 3D Printing, Drone Operation • Data Analytics, AI-Assisted Operations
COMPARISON: MY 2016 VISION vs. CURRENT PPP APPROACH
The following table (from my blog "A Welcome (First) Step to Impart Skills," May 2025)
compares my original 2016 proposal with the Maharashtra PPP Policy announced in 2025:
| PARAMETER | Maharashtra PPP Policy (2025) | Hemen Parekh 2016 Suggestion |
|---|---|---|
| Training Objective | 2 lakh students | 50 million youth annually |
| Duration of Partnership | 10-20 years | Not specified |
| Ownership | Remains with Govt | Remains with Govt |
| Private Sector Involvement | Investment-based | Profit-making model |
| Tax Holiday | Not mentioned | 10-year tax holiday for SPVs |
| Investment per ITI | ₹10-20 crore | ₹100 crore |
| Source of Funds | Budget, schemes, private investment | Black money with no questions asked |
| Curriculum Freedom | New courses (approved) | Full SPV freedom to devise curriculum |
| Admissions Management | Centralized (Govt) | SPVs free to charge fees & compete |
| Management Structure | Institute Mgmt Committee | Not specified |
| Industry Alignment | AI, Robotics (specific) | All sectors |
KEY INSIGHT FROM TABLE: My 2016 proposal aimed for 50 MILLION youth annually. The current PPP policy targets 2 LAKH (0.2 million) — a scale that is 250 times smaller. While the PPP approach is a positive first step, it falls far short of what is needed to address India's employment and automation crisis.
THE "BACK FACTORY" ALTERNATIVE
I have long argued for another path: turning India into the "Back Factory" of the world. In my 2016 blog "Automation is Inescapable"
(http://myblogepage.blogspot.com/2016/11/automation-is-inescapable.html), I proposed:
"Millions of skilled Indian workers will operate factories around the World, sitting in, internet connected "Back Factories" in small Indian towns.
Foxcon will not need to replace its high-wage Chinese workers with one million robots. At half the wages of those Chinese workers, Indians will operate Foxcon factories, all over the World, remotely!
"Make in India" will morph into "Make from India""
Technology exists today. An astronaut can operate a robot millions of miles away in space. Why cannot an Indian technician in Hyderabad operate construction robots in Dubai or Singapore via a secure internet link?
This would create jobs without requiring massive migration. It would leverage our demographic dividend. It would earn valuable foreign exchange.
THE SOUTH KOREA MODEL: PROOF THAT AUTOMATION ≠ JOBLESSNESS
A critical point: automation does not have to mean mass unemployment. In my 2022 blog "Elon Loves Optimus"
(http://myblogepage.blogspot.com/2022/06/elon-loves-optimus.html), I cited evidence:
"South Korea is the world's most automated country, according to IFR, with a robot density (robots per 10,000 human workers) of 932, which is almost eight times the global average of 126. The country's robot density has been increasing by 10% every year since 2015, yet unemployment has remained steady at around 3.5% for two decades."
ROBOT DENSITY COMPARISON (per 10,000 employees):
South Korea: 932 robots
Singapore: 488 robots
Germany: 309 robots
Japan: 303 robots
USA: 189 robots
UK: 71 robots
China: 68 robots
Brazil: 10 robots
Russia: 3 robots
INDIA: 3 robotsHow did South Korea pull this off? By making automation a COMPLEMENT to human skills, not a replacement. Workers were retrained, paid to maintain and program robots, and continuously upskilled. The result: higher productivity, higher wages, and—counterintuitively—more jobs.
We can do the same. But only if we act now.
MY CALL TO ACTION
TO SHRIRAM PROPERTIES AND ALL CONSTRUCTION AND REAL ESTATE FIRMS DEPLOYING ROBOTS:
Do not simply automate and reduce headcount. Partner with ITIs and vocational training providers to train your workforce on robot operation, maintenance, and supervision. You will find that a robot-assisted construction site still needs far more skilled humans than you might think—to manage the machines, interpret designs, ensure safety, and adapt to site-specific challenges.
TO THE GOVERNMENT OF INDIA:
Launch the National Skills University immediately, awarding B.Skill degrees. Do not wait for perfect conditions. Begin with construction, manufacturing, logistics, and hospitality—sectors facing acute labour shortages today. Use a virtual, federated model so you do not have to build 40,000 new ITI campuses. Leverage existing infrastructure, trade associations, and corporate CSR.
Set a target: CERTIFY 50 MILLION YOUNG PEOPLE IN SKILLED TRADES OVER THE NEXT 5 YEARS. That is achievable with the right design and political will.
TO STATE GOVERNMENTS:
Align your skilling and apprenticeship programmes with the Centre's National Job Skilling Policy. Make it easy for private firms to hire apprentices. Offer land, incentives, and regulatory ease to companies that combine factory investment with formal apprenticeships.
TO PARENTS AND YOUNG PEOPLE:
A career in skilled trades is no longer a fallback. It is the future. A robotics technician in a construction firm can earn ₹40,000–₹60,000 per month—as much as many office workers. A skilled electrician or plumber commands premium rates. With a B.Skill degree from a recognized National Skills University, your credentials are portable and globally competitive.
THE WINDOW IS CLOSING
We are at an inflection point. Robots are here. Labour is scarce. Wages are rising. Firms are automating. If we do not build a credible, massive, accessible skilling system in the next 18–24 months, India's demographic dividend will turn into a demographic catastrophe: millions of young people without jobs because the jobs they might have filled have been automated—and they were never trained to do anything else.
The tools exist. Virtual learning, AR/VR, digital credentials, online exams, industry partnerships—all are proven and affordable. What we lack is political courage and speed.
To paraphrase my old saying: INDIA DOES NOT NEED MORE ROBOTS. IT NEEDS MORE SKILLED WORKERS WHO UNDERSTAND ROBOTS, MAINTAIN ROBOTS, AND WORK ALONGSIDE ROBOTS. That is the real answer to Shriram Properties' labour shortage.
RELATED PRIOR BLOGS ON ROBOTS, AUTOMATION, AND SKILLS
"#Robots #AI #Economy #DigitalIndia" (April 2018)
http://myblogepage.blogspot.com/2018/04/robots-ai-economy-digitalindia.html"Automation is Inescapable" (November 2016)
http://myblogepage.blogspot.com/2016/11/automation-is-inescapable.html"Elon Loves Optimus" (June 2022)
http://myblogepage.blogspot.com/2022/06/elon-loves-optimus.html"National Skills University: Virtual is the Only Way" (April 2021)
http://myblogepage.blogspot.com/2021/04/national-skills-university-virtual-is.html"Make in India is Skill-ing India" (July 2015)
http://emailothers.blogspot.com/2015/07/make-in-india-is-skill-ing-india.html"Skilling for World: Here is Why—How!" (May 2022)
http://myblogepage.blogspot.com/2022/05/skilling-for-world-here-is-why-how.html"National Job Skilling Policy" (April 2026)
http://myblogepage.blogspot.com/2026/04/national-job-skilling-policy.html"Blue-Collar Pay Shift" (April 2026)
http://myblogepage.blogspot.com/2026/04/blue-collar-pay-shift.html"On the Job Training: a Vindication" (February 2023)
http://myblogepage.blogspot.com/2023/02/on-job-training-vindication.html"A Welcome (First) Step to Impart Skills" (May 2025)
http://myblogepage.blogspot.com/2025/05/a-welcome-first-step-to-impart-skills.html
With regards,
Hemen Parekh
www.hemenparekh.ai
October 3, 2026
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