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Infrastructure Sector in India

June, 2013


The Indian economy is getting bigger and better. Going with the estimates that Asia’s third largest economy will become the world’s third largest by 2050; a need for more robust and vast infrastructure is inevitable. Spanning from roadways to airways, ports to airports and power production facilities, Indian infrastructure segment is the thrust for the development of the nation and hence enjoys intense attention from top-grade policy makers of the country.

Liberal and supportive Government policies coupled with deliberate strategies to promote infrastructure spells great opportunities for engineering and construction (E&C) companies in India.


Roads are a major mode of transportation in India today, as they carry almost 90 per cent of the country’s passenger traffic and about 65 per cent of its freight. The density of India’s 80, 000 km-national highway (NH) network is 0.66 km of highway per square kilometre of land. It is encompassed by over 200 toll plazas, about half of which are handled by various highway developers and the rest by National Highway Authority of India (NHAI).


One of the largest and busiest rail networks in the world, the Indian Railways is spread over 64,015 route kilometres and is a major mode of transport for passenger and bulk freight traffic.

  • The Indian Railways generated total approximate earnings on originating basis of Rs. 124, 814.87 crore (US$ 21.52 billion) during 1st April 2012 to 31st March 2013 as against Rs. 104, 334.61 crore (US$ 18 billion) during the corresponding period last year, registering an increase of 19.63 per cent. While the total goods earnings increased by 23.24 per cent, total passenger revenue earnings shot up by 11.35 per cent.
    The revenue earnings from other coaching amounted to Rs. 3, 137.92 crore (US$ 540.88 million) during 1st April 2012 to 31st March 2013. The total approximate numbers of passengers booked during 1st April 2012 – 31st March 2013 were 8501.30 million compared to 8306.17 million during the same period last year, showing an increase of 2.35 per cent.
  • The cumulative foreign direct investment (FDI) inflow into the railways related components sector stood at US$ 270.33 million from April 2000 to March 2013, according to statistics released by the Department of Industrial Policy and Promotion (DIPP).