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Infrastructure industry is a key driver for the Indian economy. The sector is highly responsible for fuelling India’s overall development. Infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development.

Industry Size

The Government of India allocated Rs. 111 lakh crore (US$1.4 trillion) under the NIP for FY2019-25. Sectors such as energy, roads, urban and railways amount to about71% of the projected infrastructure investments in India. According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDIs in the construction development sector (townships, housing, built up infrastructure and construction development projects) and construction (infrastructure) activities stood at US$ 25.93 billion and US$ 23.99 billion, respectively, between April 2000 and December 2020.

Government Initiatives

In the Union Budget 2021, the government has given a massive push to the infrastructure sector by allocating Rs. 233,083 crore (US$ 32.02 billion) to enhance the transport infrastructure. The government expanded the National Infrastructure Pipeline (NIP) to 7,400 projects. About 217 projects worth Rs. 1.10 lakh crore (US$ 15.09 billion) were completed as of 2020.

Future Prospects of the Industry

India plans to spend US$ 1.4 trillion on infrastructure during till 2023 to have a sustainable development of the country. The Government has suggested investment of Rs. 5,000,000 crore (US$ 750 billion) for railways infrastructure for about a decade till 2030.