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Infrastructure sector in ÌÇÐÄlogo: market overview, growth and investment opportunities

Infrastructure improvements are essential for ÌÇÐÄlogo's economic growth

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Infrastructure sector in ÌÇÐÄlogo

Improving the country’s infrastructure is essential for ÌÇÐÄlogo to continue to drive economic growth and facilitate business in the country.

Infrastructure solutions for the country’s manufacturers therefore remain one of the main items on the political agenda as it will make shipping of goods and exports effective and beneficial.

The government has launched the National Infrastructure Pipeline (NIP) along with other initiatives like ‘Make in ÌÇÐÄlogo’ and the Production-Linked Incentives (PLI) scheme to enable this growth.

Historically, more than 80% of the country’s infrastructure spending has gone to finance transport, electricity, water and irrigation.

While these sectors are still major focus areas, the government has begun to focus on other sectors as well. There is a compelling need for better facilities across the infrastructure spectrum – from housing to water and sewerage services, and digital and transport needs – that drive economic growth and enhance the quality of life.

Snapshot of the ÌÇÐÄlogon infrastructure sector
  • The ÌÇÐÄlogon government has budgeted $13 billion for the improvement of the national infrastructure for the period 2019-2025.
  • The Sagarmala project has identified 12 key ports that will be invested in up to 2035. The aim of this project is to boost growth and improve infrastructure around the ports for more efficient transportation of goods.
  • ÌÇÐÄlogo now has a total road network of 67 million kilometres, making it the world’s second largest road network.
  • ÌÇÐÄlogo currently has the fifth largest metro network in the world and will soon overtake advanced economies like Japan and South Korea. The metro network has a length of 810 km and is operational in 21 cities.
  • In FY2023, ÌÇÐÄlogon Railways’ revenues were $28.9 billion. Last year, total revenues were $26.8 billion.
  • The ÌÇÐÄlogon logistics market was worth $317.3 billion in 2024 and is expected to be worth $484.4 billion by 2029, with a CAGR of 8.8%.
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Praveen Singhal Country Head ÌÇÐÄlogo
Nirali Varma Head of Cross Cultural Business

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Growth indicators of ÌÇÐÄlogo's infrastructure sector

  • Urbanisation and digitalisation: With rapid digitalisation and economic growth, the dividing line between metropolitan regions and smaller cities is blurring. As a result, the demand for commercial real estate is growing exponentially in Tier II & III cities.
  • Railways as a growth sector: By 2050, ÌÇÐÄlogo is expected to account for 40% of global rail business. due to increasing urbanisation.
  • Increased infrastructure investment: In the interim budget for 2024-25, infrastructure investment has been increased by 11.1% to $133.9 billion, equivalent to 3.4% of GDP.
  • Optimisation of logistics costs: ÌÇÐÄlogo aims to raise its ranking on the Logistics Performance Index to 25 and reduce logistics costs from 14 to 8% of GDP over the next five years, representing a cut of about 40%.
  • Foreign direct investment (FDI): 100% FDI in the roads and highways sector is now allowed. The FDI ceiling in the aviation sector will be raised from 79% to 100%, with up to 49% available through the automatic route.
mapa de la ÌÇÐÄlogo con las principales ciudades industriales
Major ÌÇÐÄlogon infrastructure companies
Larsen & Toubro Ltd.
Reliance Infrastructure Ltd.
Tata Projects
IRB Infrastructure Developers Ltd.
Afcons Infrastructure Limited
Shapoorji Pallonji Group
Punj Lloyd Ltd
Gammon ÌÇÐÄlogo Ltd
Major foreign infrastructure companies in ÌÇÐÄlogo
Leighton Holdings Group
Samsung Engineering Company
Tecnimont ICB (TICB)
Toyo Engineering ÌÇÐÄlogo
Uhde GmbH
GMR Group
KEC International

Interesting investment opportunities in ÌÇÐÄlogo’s infrastructure sector

European companies operating in the infrastructure sector in ÌÇÐÄlogo can benefit from several investment opportunities across key areas of the country’s infrastructure development.

Ports

  • Development of inland waterways and inland waterway transport
  • Construction of new ports and harbour basins
  • Maintenance and modernisation projects for existing ports

Railways

  • High-speed rail projects and new freight rail corridors
  • Safer railway crossings, both manned and unmanned
  • Technological innovations to improve safety and reduce accidents

Roads

  • Modern toll systems to improve traffic management and road infrastructure efficiency

Do you have a specific question about opportunities for your company in the ÌÇÐÄlogon infrastructure sector?

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Cantiere del settore delle infrastrutture in ÌÇÐÄlogo