INDIAN INFRASTRUCTURE SECTOR IN INDIA INDUSTRY REPORT:-
General Introduction:-
Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development. India was ranked 44 out of 167 countries in World Bank's Logistics Performance Index (LPI) 2018. India ranked second in the 2019 Agility Emerging Markets Logistics Index.
Market Size:-
Foreign Direct Investment (FDI) in Construction Development sector (townships, housing, built up infrastructure and construction development projects) stood at US$ 25.66 billion during April 2000 to March 2020, according to Department for Promotion of Industry and Internal Trade (DPIIT). The logistics sector in India is growing at a CAGR of 10.5% annually and is expected to reach US$ 215 billion in 2020.
Investments:-
India requires investment worth Rs 50 trillion (US$ 777.73 billion) in infrastructure by 2022 to have sustainable development in the country. India is witnessing significant interest from international investors in the infrastructure space. Some of the key investments made in the sector are listed below:
* Large investment in infrastructure has seen momentum as overall PE (private equity)/VC (venture capital) investment touched an all-time high of US$ 14.5 billion in 2019.
The largest deal was done by Abu Dhabi Investment Authority, Public Sector Pension Investment Board and National Investment and Infrastructure Fund as they made investment worth US$ 1.1 billion in GVK Airport Holdings Ltd.
- The largest deal was done by Abu Dhabi Investment Authority, Public Sector Pension Investment Board and National Investment and Infrastructure Fund as they made investment worth US$ 1.1 billion in GVK Airport Holdings Ltd.
- In FY20, the cumulative growth of eight core industries stood at 0.6%..
- As on 31 March 2019, 26.02 million households got electricity connection under the Saubhagya Scheme.
- In 2019, infrastructure sector witnessed seven merger and acquisition (M&A) deals worth US$ 1,461 million.
- In September 2020, Ministry of Petroleum & Natural Gas announced that it aims to operate 50% of fuel stations, which are owned by public sector oil companies, using solar power within five years—under the government's green energy drive.
Government Initiatives:-
The Government of India is expected to invest highly in the infrastructure sector, mainly highways, renewable energy, and urban transport:-
In April 2020, the Government set a target of constructing roads worth Rs 15 lakh crore (US$ 212.80 billion) in the next two years.
In May 2020, Border Roads Organisation (BRO) achieved major milestone by digging up a 440-metre long tunnel below the busy Chamba town on Rishikesh-Dharasu road Highway (NH 94).-
- Indian energy sector is expected to offer investment opportunities worth US$ 300 billion over the next 10 years.
- NHAI will be able to generate revenue of Rs one lakh crore (US$ 14.31 billion) from toll and wayside amenities over the next five years.
- In the Union Budget 2020–21, the Government has given a massive push to the infrastructure sector by allocating Rs 1,69,637 crore (US$ 24.27 billion) to develop the transport infrastructure.
- Indian Railways has received an allocation of Rs 72,216 crore (US$ 10.33 billion) under Union Budget 2020–21.
- Ministry of Housing and Urban Affairs received an allocation of Rs 50,040 crore (US$ 6.85 billion) under the Union Budget 2020–21.
Achievements:-
Following are the achievements of the Government in the past four years:-
Road Ahead:-
Disclaimer:-