India’s construction and infrastructure sector is facing growing challenges from climate-related risks, with experts warning that extreme heat, flooding and rapid urbanisation are threatening the resilience of major projects across the country. In a statement issued on Tuesday, Aon said climate volatility is increasingly affecting infrastructure projects at every stage, from planning and construction to long-term operations. According to Nisheeth Srivastava, President and Head of Property, Construction, Power and Infrastructure at Aon India, flooding continues to be one of the most disruptive threats to the sector.
Aon’s Climate and Catastrophe Insight reports identified flooding as a major cause of economic losses across South Asia, leading to physical damage, project delays, supply chain disruptions and rising repair costs. Construction sites remain highly vulnerable due to unfinished structures and poor drainage systems during heavy rainfall. The report also highlighted extreme heat as a growing risk, particularly for labour-intensive activities such as road construction and urban development. Rising temperatures can reduce worker productivity, increase safety risks and damage materials including concrete, asphalt and electrical components.
Aon further warned that disruptions to power, transport and logistics networks could trigger wider delays across infrastructure projects. The company also pointed to a significant insurance protection gap in India, leaving many climate-related losses uninsured and increasing financial risks for developers and contractors. The report stressed the need for stronger climate risk assessments, improved building standards and better insurance solutions to strengthen long-term infrastructure resilience in India.
