Infrastructure holds the key to propelling India’s growth story and has thus received immense attention and focus from the Government. Research reports also indicated that India is poised to become the 4th largest infrastructure market by the year 2030. The space has seen a rapid growth in the last ten years and there has been a higher push for faster and better development. The power, bridges, dams, ports, aviation, roads and urban infrastructure constitute the bulk of the investments in the infrastructure sector. This large market of opportunity has attracted foreign investors particularly from the Middle Eastern and European region.
Infrastructure development up to this point has seen a more fire-fighting approach than actual planning. Urban centres of development have seen acute shortages and inadequacies in provision of basic infrastructure that would be necessary for the functioning of commercial and residential establishments. The construction part of infrastructure has received a boost with foreign direct investments. The expertise brought in along with these investments has also helped in creating smarter projects.According to PWC, India’s difficult business environment has sapped the enthusiasm of many foreign investors. Among other things, they complain about unpredictable regulations; bureaucratic delays in approving projects; endless struggles to secure land rights; and the government’s stalled attempts at reform.
Banking support and the availability of capital has also been a cause for delays in necessary projects. Many developers have turned to the market to borrow much needed funds as banks lag in their process. The government wants a $1 trillion investment into real estate property, in order to boost the process and also hasten the infrastructure development process. This has aroused even smaller firms to bid for big projects and the private companies are taking the first step in this case.
In order to meet the growth demand that is expected from the economy, the infrastructure needs it and for this infrastructure needs better policy and healthier competition among the companies both big and small in the industry.