The Indian Infrastructure sector provides the thrust for the development of the nation and thus gets attention from top policy makers of the country.
Infrastructure sector is a key driver for the Indian economy. India needs Rs 31 trillion (US$ 465 billion) to be spent on infrastructure development over the next five years, with 70 per cent of funds needed for power, roads and urban infrastructure. An estimate of 18,637 km of expressways needs to be built by the end of the 13th Five Year Plan period i.e. 2022.
Policy makers are giving prime importance to the major areas which require infrastructural improvement :
Major Thrust Areas
- Roadways & bridges
- Railways(includes MRTS)
- Power Production
- Urban infrastructure
- Water Supply, Irrigation & dams
- Ports & Harbor
- Total investment in the road sector, including PMGSY allocation, would be Rs 97,000 crore during 2016-17.
- To approve nearly 10,000 kms of National Highways in 2016-17.
- Allocation of Rs 55,000 crore in the Budget for Roads.
- Additional Rs 15,000 crore to be raised by NHAI through bonds.
- Total outlay for infrastructure – Rs 2,21,246 crore.
With projected 12% increase in passenger traffic and 15% cargo traffic annually,the above mentioned career paths are likely to grow exponentially. Besides this, the Government of India plans to invest another USD 15-25 million in the coming years, to improve road infrastructure.
Rail (includes MRTS)
Spread over 64,015 km, the Indian Railway network is a major mode of transport for passengers and goods. The Indian Government is planning to invest USD 60 million, considering the capacity constraints in the rail system. Taking into account the current infrastructure, the government has initiated several projects such as:
- The Dedicated Freight Corridor Project
- Developing Manufacturing Plant for Rolling Stock
Metro networks are also being developed in full swing with Delhi Metro Phases III (112 km) and IV (108.5 km) expected to be completed by 2021. New Delhi will then have a 413 km (257 mi) long stretch with Metro connectivity. Other major cities that will have Metro connectivity soon in Mumbai, Bangalore, Chennai, Kochi, Lucknow etc
Cargo traffic, is expected to reach 1,758 MMT by 2017 which was recorded 1,052 million metric tonnes (MMT) in 2015. India is the sixteenth largest maritime country in the world, with a coastline of about 7,517 km. The Indian Government plays an important role in supporting the ports sector. It has allowed Foreign Direct Investment (FDI) of up to 100 per cent under the automatic route for port and harbour construction and maintenance projects.
The Indian Aviation department has set up Airport Economic Regulatory Authority (AERA), which takes of the efficiency, pricing competiveness, and customer-focused service. The Government has already invested USD 10 billion on new airports and maintenance of existing airports. Government is emphising for air connectivity in TIER II cities in addition to metro cities which will lead to development of large scale development of airport infrastructure.