Last Updated: November 27, 2015
Chairman & CEO, Barclays Asia-Pacific
Last Updated: September, 2015
CONSTRUCTION EQUIPMENTS SECTOR REPORT | August, 2015
Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country.
Infrastructure sector includes power, bridges, dams, roads and urban infrastructure development.
The Indian power sector has an investment potential of US$ 250 billion in the next 4-5 years, providing immense opportunities in power generation, distribution, transmission and equipment, according to Mr Piyush Goyal, Union minister of coal, power and renewable energy.
The total approximate earnings of Indian Railways on originating basis during FY 2014-15 were Rs 1,57,880 crore (US$ 23.76 billion) compared with Rs 1,40,761 crore (US$ 21.19 billion) in FY 2013-14, registering an increase of 12.2 per cent. The total approximate earnings from goods during FY 2014-15 were Rs 1,07,074 crore (US$ 16.17 billion) compared with Rs 93,476 crore (US$ 14.07 billion) in FY 2014-15, an increase of 14.5 per cent.
The number of export and import containers moving through major ports in India expanded 7.34 percent year-over-year from April to October 2014, as a result of the Modi Government’s efforts to make port development a major priority.
Foreign direct investment (FDI) received in construction development sector from April 2000 to June 2015 stood at US$ 24.09 billion, according to the Department of Industrial Policy and Promotion (DIPP).
India is witnessing significant interest from international investors in the infrastructure space. Many Spanish companies are keen on collaborating with India on infrastructure, high speed trains, renewable energy and developing smart cities
The Government of India is taking every possible initiative to boost the infrastructure sector. Some of the steps taken in the recent past are being discussed hereafter.
Indian port sector is poised to mark great progress in the years to come. It is forecasted that by the end of 2017 port traffic will amount to 943.06 MT for India’s major ports and 815.20 MT for its minor ports.
Along with that, Indian aviation market is expected to become the third largest across the globe by 2020, according to industry estimates. The sector is projected to handle 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion. Indian Aviation Industry, which currently accounts for 1.5 per cent of the gross domestic product (GDP), has been instrumental in the overall economic development of the country. Given the huge gap between potential and current air travel penetration in India, the prospects and possibilities of growth of Indian aviation market are enormous.
Exchange Rate Used: INR 1 = US$ 0.01505 as on September 15, 2015
References: Media Reports, Press Releases, Press Information Bureau, Department of Industrial Policy and promotion (DIPP).
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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