Advantage India
Robust
Demand
* India has to enhance its infrastructure to reach its 2025 economic growth target of US$ 5 trillion.
* Cement demand in India is projected to remain robust in the coming years, with a compound annual growth rate (CAGR) of 7-8% over FY25E-27E, according to a report by JM Financial.
* As per the Reserve Bank of India (RBI) in the past 4 years until March 2024, Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have amassed US$ 15.60 billion (Rs. 1.3 lakh crore).
* According to a Cushman & Wakefield report, India's real estate market saw a surge in investments during the second quarter of 2024, attracting US$ 2.77 billion.
Attractive
Opportunities
* Development of infrastructure has a multiplier effect on demand and efficiency of transport and increases commercial and entrepreneurship opportunities.
* In March 2024, Prime Minister, Mr. Narendra Modi inaugurated multiple connectivity projects in Kolkata, totaling US$ 1.8 billion.
* Union Minister of Finance Ms. Nirmala Sitharaman announced plans to connect 120 new airports over the next 10 years, benefiting four crore additional passengers
* As per a report of Morgan Stanley India's infrastructure investment to steadily increase from 5.3% of GDP in FY24 to 6.5% of GDP by FY29.
* Government has approved 56 new Watershed Development Projects across 10 high-performing states, with a budget of Rs. 700 crore (US$ 80.9 million).
Policy
support
* As a part of the Union Budget 2025-26 is complemented with a continuation of the 50-year interest-free loan states for capital expenditure and incentives for reforms., with a significantly enhanced outlay of Rs. 1.5 lakh crore (US$ 17.30 billion).
* As per the Union Budget 2025-26 access to relevant data and maps from the PM Gati Shakti portal will be provided to private sector in project planning.
* The Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) is a government initiative aimed at developing modern infrastructure and efficient supply chain management to boost the food processing sector in India. The scheme aims to reduce agricultural wastage, increase the processing level, improve farmers' returns, and create rural employment opportunities.
Increasing
Investments
* In the Union Budget 2025-26, capital investment outlay for infrastructure has been increased to Rs.11.21 lakh crore (US$ 128.64 billion), which would be 3.1% of GDP.
* FDI in construction development (townships, housing, built-up infrastructure and construction development projects) and construction (infrastructure) activity sectors stood at Rs. 1,32,601.17 crore (US$ 26.76 billion_ and Rs. 2,50,628.61 crore (US$ 35.24 billion), respectively, between April 2000-September 2024.
* Adani Group has announced an investment of Rs. 30,237 crore (US$ 3.46 billion) in Kerala over the next five years, focusing on infrastructure, logistics, and manufacturing. This significant investment presents attractive opportunities for growth and development in the region.
Reliance Infrastructure Limited (RInfra)
Reliance Infrastructure Limited (RInfra) is one of the largest infrastructure companies, developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors such as power, roads, metro rail and airport in the infrastructure space and the defence sector. The company is also a leading utility company with presence across the chain of power businesses such as generation, transmission, distribution, and power trading. RInfra, through its SPVs, has executed a portfolio of infrastructure projects under BOT such as a metro rail project in Mumbai and eleven road projects with total length of about 1,000 kms. RInfra, along with its wholly owned subsidiary company, has installed capacity of 441 MW of power and distributes power to over 40 lakh consumers in Delhi. RInfra also provides Engineering, Procurement, and Construction (EPC) services for developing power infrastructure and road projects.
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GMR Infrastructure
GMR Infrastructure Limited (GIL) is engaged in generation of power, mining and exploration activities, development of highways, infrastructure development, such as development and maintenance of airports and special economic zone; construction business, including Engineering, Procurement and Construction (EPC) contracting activities and operation of airports and special economic zones. Its airports segment is engaged in the development and operation of airports. Its power segment is engaged in generation of power and provision of related services and exploration and mining activities. The roads segment is engaged in the development and operation of roadways. The EPC segment is engaged in handling of engineering, procurement, and construction solution in the infrastructure sector. The others segment is engaged in urban infrastructure and other activities.
Read MoreIRB Infrastructure Developers Limited
IRB Infrastructure Developers Limited is a road BOT operator. The company's principal activity is the construction and maintenance of roads. Its business segments include road infrastructure projects, which includes development and operation of roadways; real estate, which includes real estate development; and others, which includes windmill (sale of electricity generated by windmill), hospitality and airport infrastructure. Its construction business complements its BOT vertical by executing engineering, procurement and construction, and O&M aspects of BOT concessions. It has a portfolio of over 20 road BOT projects. It has in-house integrated project execution capabilities in both its business verticals, including construction and O&M of highways. Its clients include government agencies such as National Highways Authority of India (NHAI) and state road development authorities, which develop highways.
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