INDIAN INFRASTRUCTURE INDUSTRY AT A GLANCE IN 2022 - 2023
The Indian Infrastructure Industry is a key factor that drives the Indian Economy making it to touch new heights year after year. Of late there had been rapid development of Infrastructure in India and this has increased the ease of doing business in India, roping in key foreign investors. With the current growth trends in the infrastructure arena, India is to become a US$ 5 trillion economy by 2025.
• The Indian Railways expects to complete total revenue from traffic of Rs. 2,64,600 crore (US$ 32.17 billion) for FY24.
• India’s logistics market reached US$ 410.75 billion in 2022 and is expected to reach US$ 556.97 billion by 2027, growing at a CAGR of 6.28%.
• AAI and other Airport Developers have targeted capital outlay of approximately Rs. 98,000 crore (US$ 11.8 billion) in airport sector in the next five years for expansion and modification of existing terminals, new terminals.
• India plans to spend US$ 1.4 trillion on infrastructure through ‘National Infrastructure Pipeline’ in the next five years.
• In the last financial year, infrastructure activities accounted for 13% share of the total FDI inflows of US$ 81.72 billion.
Government InitiativesUnder Budget 2023-24, capital investment outlay for infrastructure is being increased by 33% to Rs.10 lakh crore (US$ 122 billion), which would be 3.3 per cent of GDP and almost three times the outlay in 2019-20.
Investments in the Industry
FDI in construction development like townships, housing, built-up infrastructure, and construction development projects and construction infrastructure activity sectors stood at US$ 26.23 billion and US$ 28.95 billion, respectively, between April 2000-September 2022
Future ProspectsThe construction market is expected to reach US$ 1.42 trillion by 2027, expanding at a CAGR of 17.26% during the 2022-2027 forecast period. India, it is estimated, needs to invest $840 billion over the next 15 years into urban infrastructure to meet the needs of its fast-growing population.