Infrastructure and construction are key drivers of economic growth
India’s infrastructure landscape roadmap looks promising with a plethora of opportunities for all types of construction equipment suppliers
posted on June 16, 2022 | Author GENERAL (DR) VK SINGH
Infrastructure is the backbone of our country and, along with the construction sector, plays a crucial role in accelerating India’s overall development, thereby acting as a key propellant of economic growth. India’s infrastructure sector has consistently shown remarkable resilience despite the covid disruptions and limitations that had brought construction activities to a complete halt. However, we have all observed that after these disruptions, infrastructure and construction emerged as the first economic activities to resume. With the aim of renewing and exploring new perspectives in the Indian construction sector, I would reflect on the overall infrastructure landscape as it is largely responsible for propelling the overall development of India and enjoys intense government attention to initiate policies that would ensure the timely creation of world-class infrastructure in the country and make India more competitive.
Our government has already undertaken many groundbreaking initiatives in the recent past to stimulate infrastructure investment in the country. Recent announcements in the budget further reflect our government’s renewed commitment with its continued investment in strengthening the country’s infrastructure. The launch of the National Infrastructure Pipeline (NIP) to invest 111 lakh crore in infrastructure projects by 2024-25; The launch of the 6 lakh crore asset monetization program to attract private sector participation and investment in brownfield infrastructure assets are important steps in this direction.
With a well-developed framework for PPPs in the highway sector, India is already making rapid progress towards its ambitious goal of expanding the national highway network by 25,000 km this fiscal year. The Bharatmala Pariyojana aims to build about 65,000 km of national and economic corridors, border and coastal roads and highways to maximize the efficiency of the road infrastructure already built. The program will provide 4-way connectivity to 550 districts and develop 50 economic corridors and also attract opportunities for construction equipment players. Already there is 100% IDE allowed on roads and highways under the automatic route. These will stimulate the economy.
Similarly, the aviation sector will see the expansion of airport infrastructure with an investment of US$1.83 billion as well as navigation services by 2026. This would further provide ample opportunities for the construction industry. Meanwhile, according to a recent report, the construction industry in India is expected to reach $1.4 billion by 2025 and is expected to become the third largest in the world. Rapidly evolving technology is also redefining the way construction activities are conducted and managed in India. The The construction industry market in India spans 250 sub-sectors with linkages across various sectors and providing opportunities for construction equipment players.
Technology and sustainability will play an important role in the construction sector. Focusing on digitization to automate design, construction and operation processes would ensure the cost-effective and timely completion of major projects. Clean energy and green initiatives for infrastructure development have provided much-needed impetus to the growth of this sector. Moreover, the integration of latest technologies and movements would also help contribute to the futuristic development of infrastructure in the country.
Road transport is considered to be one of the most profitable and preferred modes of transport, both for freight and for passengers, given its level of penetration in populated areas. Thus, it is vital for the economic development and social integration of the country. Road transport has become the dominant segment of the transport sector in India. The road transport sector accounts for about 87% of passenger traffic and 60% of freight traffic in the country. Easy availability, adaptability to individual needs and cost savings are some of the factors that favor road transport. Road transport also serves as a feeder service for rail, maritime and air traffic. The growth of this sector with better road infrastructure will give a positive rebound to the economy.
The Indian construction sector offers quite an attractive proposition for foreign developers. The infrastructure landscape roadmap in India looks promising with a plethora of opportunities for all types of construction equipment suppliers. India’s growth story is closely tied to infrastructure development. It is necessary to respect the objectives set to achieve this. The Ministry of Road Transport and Highways is committed to writing new chapters of growth and economic development. This positivity will infuse all promising sectors.
(The author is MoS MoRTH)