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Infrastructure

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Infrastructure Sector in India

March, 2013

Introduction

Infrastructure in any country plays a vital role for the economy’s growth and development. The Indian economy is getting bigger and better with every passing year. And needless to say, Infrastructure will contribute significantly to the country’s overall development. Nearly all the infrastructure sectors will provide excellent opportunities for investments, with roads, railways, ports, power and airports being the major attractions.

Roads

India has the second largest road network in the world with a road length of 4.24 million km. Also, India's road density is among the highest in the world with 1.29 km of roads per sq. km of area. India's national highways and expressways constitute about 1.67 per cent of the road length, and the percentage of paved roads is 49.3 per cent. Moreover, India's road freight volumes are increasing at a compounded annual growth rate (CAGR) of 9.08 per cent coupled with the boost in the population of vehicles (all types) at a CAGR of 10.76 per cent. In order to cater to such burgeoning needs, road length is increasing at a CAGR of 4.01 per cent.

Also, owing to rapid increase in motorisation and urbanisation, the Indian Government is leaving no stone unturned to enhance the road network. As a result of the initiatives taken, the total road length in India has increased eight times over the past four decades.

Railways

Indian Railways transports 2.65 million tonne (MT) of freight and 23 million passengers every day.

The Indian Railways generated revenues of Rs.101, 223.95 crore (US$ 18.63 billion) during April-January 2012-13 as against Rs 84, 083.74 crore (US$ 15.47 billion) during the corresponding period last year, registering an increase of 20.38 per cent. While the total goods earnings increased by 24.76 per cent, total passenger revenue earnings shot up by 11.05 per cent.

The revenue earnings from other coaching amounted to Rs 2, 617.19 crore (US$ 481.57 million) during April-January 2012-13. The total approximate numbers of passengers booked during April 1, 2012 – January 31, 2013 were 7, 150.60 million compared to 6, 910 million during the same period last year, showing an increase of 3.48 per cent.

The cumulative foreign direct investment (FDI) inflow into the railways related components sector stood at US$ 258.26 million from April 2000 to December 2012, according to statistics released by the Department of Industrial Policy and Promotion (DIPP).