Mr. Ani Ray, Vertical Head
Infrastructure sector is a key driver for the Indian economy and overall development and enjoys intense focus from Government for initiating policies to expediting creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development.
Market Size 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$ 26.08 billion and US$ 24.72 billion, respectively, between April 2000 and March 2021.
In FY21, infrastructure activities accounted for 13% share of the total FDI inflows of US$ 81.72 billion. India will be world ‘s 3rd largest Construction market in 2022 and will need over 700 billion Dollar investment for sustainable development. Government Initiative and investment Cabinet approval sets the implementation of PM Gati Shakti National Master Plan (NMP) in motion In October 22, The Cabinet Committee on Economic Affairs (CCEA) has approved PM Gati Shakti National Master Plan including institutional framework for rolling out, implementation, monitoring and support mechanism for providing multi-modal connectivity. Hon’ble Prime Minister launched PM GatiShakti NMP for multi-modal connectivity on 13th October, 2021. Implementation framework includes Empowered Group of Secretaries (EGOS), Network Planning Group (NPG) and Technical Support Unit (TSU) with required technical competencies with a view to address the issues of Multi Modal connectivity and last mile connectivity. This will help in bringing down the logistics cost. This will translate into enormous economic gains to consumers, farmers, youth as well as those engaged in businesses.
The various government Initiatives on Infrastructure are for various sectors
- A massive push to the infrastructure sector by allocating Rs. 233,083 crore (US$ 32.02 billion) to enhance the transport infrastructure.
- Rooftop Solar Programme Phase II for residential sector
- ‘Freight Smart Cities’ with goal of improving the efficiency of urban freight and lowering logistics
- Engineering, procurement, and construction (EPC) package, with land development for 500 MW of grid-connected solar projects anywhere in India.
- Government is giving utmost priority to infrastructure development and has set a target of road construction of worth Rs.15 lakh crore (US$ 206 billion) in the next two years.
- Ministry of Railways plans to monetise assets including Eastern and Western Dedicated Freight Corridors after commissioning, induction of 150 modern rakes through PPP, station redevelopment through PPP, railway land parcels, multifunctional complexes (MFC), railway colonies, hill railways and stadiums.
- 574 projects have been identified, under the Sagarmala project, for implementation through 2035
- An outlay of Rs. 64,180 crore (US$ 8.80 billion) over six years to strengthen the existing ‘National Health Mission’ by developing capacities of primary, secondary & tertiary care and healthcare systems & institutions to detect and cure new and emerging diseases.
- The government announced Rs. 18,998 crore (US$ 2.61 billion) for metro projects.
- Mega Investment Textiles Parks (MITRA) scheme was launched to establish world-class infrastructure in the textile sector and establish seven textile parks over three years.
- The government announced Rs. 305,984 crore (US$ 42 billion) over the next five years for a revamped, reforms-based and result-linked new power distribution sector scheme.
The infrastructure sector has become the biggest focus area for the Government of India. India plans to spend US$ 1.4 trillion on infrastructure during 2019-23 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 from 2018-30. India and Japan have joined hands for infrastructure development in India’s Northeast states and are also setting up an India-Japan Coordination Forum for Development of Northeast to undertake strategic infrastructure projects for the region.
To implement the above , not only huge Infrastructure Development from Financing , Construction, Operation & Maintenance is needed and alongwith domestic resources , huge global initiatives are needed.
BRICS CCI with a focussed Vertical for Infrastructures will like to be a part of this initiative by networking of the resources across BRICS and other countries. The verticals will aim to identify specific sectoral opportunities and augment with experienced players willing to take up the opportunities and thus being a catalyst in the Infrastructure growth process. It will interact with various Ministries / departments/ Embassies / Trade missions /companies of Infrastructures and facilitate the process by Seminars / panel discussions / face to face meetings etc. The Vertical will help in hand holding new companies to acquaint with Legal /Commercial / Taxation and various other Statutory requirements using cross functional expertise available with BRICS CCI.
Mr. Sudhir Sabharwal (Convenor, Infrastructure Vertical)