The aim of the study is to analyse and identify the major financial risks that are present in the construction industry of India. Financial risk is very important factor which have potential to negatively impact the construction projects. For the purpose of gathering the information, about these risks a questionnaire was distributed to the experts of the Indian construction industry. This helped to gain insights an opinion of individuals who have very vast knowledge of construction industry in India. This study showcases various financial risks which are significant that includes inflation, sudden price fluctuations, shortage in material and labour supply. Financial practice can have direct inflation of project cost and their timely completion. This study has not focused on political social and cultural areas as data assumed to be insignificant and contacts of Indian construction industry. This is due to the fact of Government stability and the impact of cultural differences on construction projects. Both local and multinational construction experts gave their opinion on ranking of risks in Indian construction market. The findings of the study indicates that most of the risks are either allocated to contractor or shared with the owner, on the other hand owner has been allocated very few risks.

Keywords

Risk management; Risk assessment; International construction, financial risk, Indian Construction industry.