The construction and infrastructure industry is critical to India's overall economic growth.
Power, bridges, dams, highways, and urban infrastructure development are part of the Indian infrastructure industry's radar. The Indian government has placed a high priority on enacting regulations that would assure the country's world-class infrastructure in a timely manner.
Reasons for Investing
- India is predicted to soon overtake other countries as the world's third-largest construction market.
- 76% of India's highway network needs to be converted to four-lane, thus offering immense investment scope.
- India plans for an investment requirement of 750 billion USD for railways infrastructure development and 50 trillion USD for the country's sustainable development.
- The lack of proper infrastructure in the Northeast part of the country offers lucrative investment options for foreign investors.
- 1.89 billion USD allocated under union budget for schemes like Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Housing for all, and Smart cities mission.
- Construction and infrastructure activities account for 13% of India's total FDI inflows worth 81.7 billion USD.
- Reliance Digital Fiber Infrastructure Trust Investment of 1 billion USD has given further impetus to FDI in the sector.
- Favorable valuations make the sector an attractive opportunity.
Industry Growth Factors
- The country's growing focus on infrastructure development is drawing both domestic and foreign players.
- Various infrastructure areas, ranging from roads and communications to electricity and airports, are seeing the private sector emerge as a prominent stakeholder.
- The Regional Connectivity Scheme (RCS) provides opportunities for airport growth.
- The Government of India has agreed to create a one-window clearance facility to expedite the licensing of construction projects to avoid project completion delays.
- The government encourages rooftop solar (RTS) throughout the country with subsidies and several other policy relaxations from the sustainability aspect.
TIGS brings out the best solutions to assist your business in finding the right way forward to penetrate the Indian market. We are a one-stop solution to make the right trade and investment decisions in India as per your business needs.
To get more information about this industry, let's connect!