Corona hasn’t been a reason for India to stand still and wait for things to happen. The government is pushing forward with a huge investment program covering transport, energy, logistics, communication, water and sanitation, and intended to stimulate economic growth, improve the infrastructure across the entire country and achieve economic recovery. Agilium Worldwide’s executive search member in India, Bipaschit Bose, CEO Prospect, gives us some insights into the details and the aspired gains of the program.
“The government recently announced plans to move quickly in developing India’s infrastructure, particularly in two key areas, the highways and the railways. Rather than handing out subsidies and individual rescue packages, a specially formed Development Financial Institute will raise funds from investors, countries and banks, on a global basis. These funds will then be invested in infrastructure across the entire country, creating jobs and fueling economic growth. By 2022 India is expected to be the third largest construction market in the world, building 65,000 kilometers of national highways, for example. Such projects will be massive job creators and provide benefits for auxiliary sectors, too. Not only will additional manpower be required in building and construction, but new roads also mean more services - gas stations, hotels and motels, restaurants - and low-cost housing along the routes, and more local employment in the en-route towns, 100 of which will undergo urban renewal and retrofitting programs. The demand for materials such as concrete, steel and finished parts will drive growth in the supplier sectors.
Modernizing and expanding the railways will involve building new and better tracks, (re)developing 400 railway stations through public private partnerships, introducing fast-speed and clone trains to run along high load routes, all funded with $10.5 billion just this year alone. The Indian Railways are even handing over 109 routes to private operators. Its railways are India’s largest movers of freight and people, and integrating green, electric trains with other methods of transport will improve connectivity across the entire country. With more goods on the tracks, there’ll be more need for further logistics services like warehousing facilities and distribution centers and investment in this sector is expected to reach $500 billion by 2025.”
The biggest success factor will be getting the necessary funds - a projected $1,893 billion for 7,667 different projects - followed by timely implementation and supported by a skills development program, a reliable energy supply and an excellent communications network. India seems to be poised to enter a phase of recovery and growth, and is likely to be a very attractive long-term investment destination.
(Primary sources: IBEF Report, India Investment Grid)
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