INFRASTRUCTURE

May 2024
For updated information, please visit www.ibef.org
Table of Contents

Executive Summary 3

Advantage India 4

Market Overview and Trends 6

Strategies Adopted 13

Growth Drivers and Opportunities 15

Key Industry Contacts 28

Appendix 30

2
Executive summary

2. INCREASING PRIVATE 3. IMPROVEMENT IN LOGISTICS

SECTOR INVOLVEMENT • India’s logistics market is estimated to be
• The Indian government has introduced various formats in US$ 317.26 billion in 2024 and is expected
order to attract private investments, especially in roads and to reach US$ 484.43 billion by 2029,
highways, airports, industrial parks and higher education and growing at a CAGR of 8.8%.
skill development sectors. • The Ministry of Commerce and Industry,
• Private Equity-Venture Capital firms invested US$ 3.5 billion states that the logistics sector accounts for
(across 71 deals) in Indian companies in May 2023. 5% of India's GDP and provides jobs for
nearly 2.2 crore Indians.
• India road logistics industry will grow at 3-
6% in FY25 as per ICRA.
4. RISING FOREIGN
1. HIGH BUDGETARY
DIRECT INVESTMENT
ALLOCATION FOR
(FDI) IN THE SECTOR
INFRASTRUCTURE
• In Interim Budget 2024-25, capital • FDI in construction development
investment outlay for infrastructure (townships, housing, built-up
has been increased by 11.1% to infrastructure and construction
Rs.11.11 lakh crore (US$ 133.86 development projects) and
billion), which would be 3.4% of construction (infrastructure) activity

•
GDP.
Infrastructure Finance Secretariat
2 3 sectors stood at US$ 26.61 billion and
US$ 33.91 billion, respectively,
is established to enhance between April 2000-March 2024.
opportunities for private • FDI rules have been significantly
investment in infrastructure that liberalized in India and can provide
foreign investors with options aligned
will assist all stakeholders for
more private investment in
1 4 with their business goals.
infrastructure.

Source: Media sources, DPIIT, Equirius Capital, EY, National Infrastructure Pipeline

3
Advantage India

4
Advantage India

2. ATTRACTIVE OPPORTUNITIES 3. POLICY SUPPORT

• Development of infrastructure has a multiplier effect on ▪ Budget 2023-24 is complemented with a continuation of the 50-
demand and efficiency of transport and increases commercial year interest-free loan to state governments for one more year to
and entrepreneurship opportunities.
• In March 2024, Prime Minister, Mr. Narendra Modi spur investment in infrastructure and to incentivize them for
inaugurated multiple connectivity projects in Kolkata, totalling complementary policy actions, with a significantly enhanced
US$ 1.8 billion. outlay of Rs. 1.3 lakh crore (US$ 16 billion).
• In March 2024, the Minister of Civil Aviation and Steel ▪ Under the National Infrastructure Pipeline (NIP), projects worth
announced inaugurating 15 airport projects worth US$ 12.1 Rs. 108 trillion (US$ 1.3 trillion) are currently at different stages
billion by 2028. of implementation
• In June 2022, the Minister of Road Transport and Highways, ▪ In November 2022, National Investment and Infrastructure Fund
opened 15 national highway projects worth Rs. 13,585 crore (NIIF) is set up as a collaborative investment platform between
(US$1.7 billion) in Patna and Hajipur, Bihar.
the Government of India, global investors, multilateral
development banks (MDB) and domestic financial institutions to
1. ROBUST DEMAND facilitate investment across multiple sectors in India through an
• India intends to enhance its India Japan Fund.
infrastructure to reach its 2025
economic growth target of US$ 5 4. INCREASING INVESTMENT
trillion. ▪ In Interim Budget 2024-25, capital
• India's population growth and investment outlay for infrastructure has
economic development require been increased by 11.1% to Rs.11.11 lakh
improved transport crore (US$ 133.86 billion), which would be
infrastructure, including 3.4 % of GDP.
investments in roads, railways,
aviation, shipping and inland
2 3 ▪ Under Budget 2023-24, Infrastructure
Finance Secretariat is being established to
waterways. enhance opportunities for private
• As per the Reserve Bank of investment in infrastructure that will assist
India (RBI) in the past 4 years all stakeholders for more private
until March 2024, Real Estate investment in infrastructure, including
Investment Trusts (REITs) and railways, roads, urban infrastructure, and
Infrastructure Investment Trusts
(InvITs) have amassed US$
1 4 power.

15.60 billion (Rs. 1.3 lakh crore).

Source: Media Sources, DPIIT, Economic Survey 2023, News Articles

5
MARKET OVERVIEW AND TRENDS

6
Performance of eight core infrastructure industries

▪ The production of Coal, Electricity, Steel, Cement, Fertilizers, Index of eight core industries
Refinery Products and Natural Gas increased in January 2024.

▪ The combined Index of Eight Core Industries (ICI) increased by 6.2%

(provisional) YoY in April 2024 compared to April 2023.

▪ In April 2024, the overall index of eight core industries stood at

160.5* driven by the production of coal, refinery products, fertilizers,

200.3

198.3
steel, electricity and cement industries.

185.7

185.2
182.7

177.6

170.5
▪ The cumulative growth rate of ICI during FY24 stood at 7.6%

163.6

157.8
(provisional) compared to last year's corresponding period.

146.6
135.9
131.2

129.8
▪ In February 2024, NTPC Limited and National Aluminium Company

125.1
Limited (NALCO), a Navaratna company, inked a non-binding
memorandum of understanding (MoU) to investigate ways to provide

77.1

76.8
76.6
at least 1200 MW of continuous power supply around the clock to

72.4
meet NALCO's needs for expanding the capacity of its smelter plant
in Odisha.

▪ In August 2022, the Prime Minister of India inaugurated the nation's

first second-generation (2G) ethanol project in Panipat, built at an

Coal

Natural Gas

Fertilisers

Cement

Overall
Crude Oil

Steel

Electricity
Products
Refinery
estimated cost of over Rs. 900 crore (US$ 108.7 million) by Indian
Oil Corporation Ltd. (IOCL).

FY24* FY23

Note: * - Provisional (April-February 2023-24)

Source: Ministry of Commerce and Industry, NTPC Website, PIB, News Articles

7
Growth in infrastructure related activities

▪ The ‘Green Energy Project’ is an initiative to make Indian Railways Growth in infrastructure-related activities in FY24 (in %)
environment-friendly by focusing on renewable sources of energy.
▪ In April 2023, the network planning group (NPG) under the PM
25
GatiShakti initiative approved four railway projects related to the
doubling of lines between Aurangabad and Ankai in Maharashtra.
20.00
▪ In FY24, cement production increased by 9% driven by the 20
government’s push for infrastructure development and increased real
estate activity.
15
▪ As of March 2022, the Ministry-wise progress of projects is as
follows:
➢Ministry of Road Transport and Highways has completed 1,41,190 10
km of National Highways out of the set target of 2,00,000 km for 6.22
2024-25. 4.55
5
➢Department of Telecommunication has created the OFC (Optical
1.3
Fibre Cable) network of 33,00,997 km against the set target of
50,00,000 km for 2024-25. 0

Rail freight

major ports
Electricity Generation

National Highway Construction

➢Ministry of Petroleum has completed the laying of a gas pipeline of

Cargo at
earning
20,000 km out of 34,500 km targeted for the same period.
➢Ministry of Power has surpassed its target for laying the
transmission network of 4,54,200 km.
▪ The goal for the production of electricity (including renewable energy)
in 2023–2024 has been set at 1750 billion units (BU). i.e. an increase
of roughly 7.2% over the 1624.158 BU that were actually generated
in the preceding year (2022–2023). With a growth of roughly 8.87%,
the generation in 2022–2023 was 1624.158 BU, compared to
1491.859 BU in 2021–2022.

Source: Economic Survey, Ministry of Railways, Indian Ports Association, Central Electricity Authority

8
Strong momentum in expansion of roadways

▪ India has about 63.73 lakh km of road network, which is the second largest in the
world. Road construction per day (kms)
▪ As per ICRA India is expected to maintain current road construction momentum,
adding up to 13,000 kilometres in the 12 months through March 2025, an annual
40
increase of 5-8%.
▪ National Highways play a very important role in the economic and social
35

37
development of the country by enabling efficient movement of freight and passengers
and improving access to the market. MoRTH and its implementing agencies have

34
implemented multiple initiatives in the last 8 years to augment the capacity of the 30
National Highway infrastructure in India.

30

29
▪ In the Interim Budget 2024-25, the government has decided to allocate Rs. 2.76 lakh

28
28
27
crore (US$ 33.4 billion) towards the Ministry of Roads for 2024-25. 25
▪ In FY24, the total length of National Highways in the country is 1,46,145 km.

23
▪ National Highways had increased from 91,287 km in 2013-14 to 1,46,145 km in 20
2023-24, and the pace of construction had improved from 12.1 km a day in 2014-15
to 28.3 km in FY23.

17
15
▪ In December 2022, Mr. Nitin Gadkari, Minister of Road Transport and Highways
inaugurated and laid the foundation stone of 8 National Highway projects of 226 km

12
length worth Rs. 1800 crore (US$ 217.4 million) at Igatpuri, Nashik, Maharashtra. 10
▪ In October 2022, the Prime Minister of India laid the foundation of road and ropeway
projects worth more than Rs. 3,400 crores (US$ 410 million) in Mana, Uttarakhand. 5
▪ A network of 35 Multimodal Logistics Parks is planned to be developed as part of
Bharatmala Pariyojana, with a total investment of about Rs. 46,000 crore (US$ 5.5
0
billion), which once operational, shall be able to handle around 700 million metric FY15 FY17 FY19 FY21 FY23
tonnes of cargo. Of this, MMLPs at 15 prioritized locations will be developed with a
total investment of about Rs. 22,000 Crore (US$ 2.6 billion).
▪ Government is working towards the development of a national highway network of 2
lakh kms by 2025.

Source: Ministry of External Affairs, Economic Survey 2022, News Articles

9
Strong revenue growth for Indian railways

▪ The Indian Railways expects to complete total revenue of Rs. 2,64,500 crore (US$
Gross revenue trends over the years (US$ billion)
31.81 billion) by the end of 2023-24.
▪ As per the Interim Budget 2023-24, a capital outlay of Rs. 2.55 lakh crore (US$
30.72 billion) has been made for the Railways, an increased of 5.8% over the 35.00
previous year.
▪ For 2023-24:
➢ Total revenue from traffic is estimated to be Rs. 2,64,600 crore (US$ 32.17 30.00
billion), an increase of 9% over the previous year.

29.18
➢ During FY 2023-24, Total revenue of Indian Railways stands at US$ 28.89

27.71
billion (Rs 2.40 Lakh Crore) as on 15th March. Last year on 15th March, total 25.00

25.02
Revenue was US$ 26.84 billion (Rs 2.23 Lakh Crore).

24.99
24.64
➢ Freight revenue is estimated to be Rs. 1,79,500 crore (US$ 21.82 billion), an

23.10
increase of 9% over the previous year. The passenger revenue is estimated to 20.00
be Rs. 70,000 crore (US$ 8.51 billion), an increase of 9% over the previous
year.
▪ As per the preliminary data, Indian Railways has crossed an originating Freight 15.00
loading of 1500 MT on 15th March 2024.
▪ Indian Railways installed 1000 MW of solar power plants and about 200 MW of
wind plants in 2022-23. Out of this, about 204.82 MW (101.42 MW solar and 10.00
103.4MW wind power) of renewable power has already been set up.
▪ As of November 2022, 83% of the total Broad-Gauge network has been electrified.
During 2022-23, electrification of 1,973 Route km (2,647 TKM) has been achieved, 5.00
which is 41% higher as compared to the corresponding period of 2021-22.
▪ In addition, 1,161 & 296 km of electrification of double lines & sidings respectively
have also been completed to date. Thus, a total of 4100 TKM have been electrified 0.00
during 2022-23

FY22
FY17

FY18

FY19

FY20

FY23
▪ Indian Railways' Coach production units have ramped up LHB coach production by
manufacturing 4,175 LHB coaches in FY 2022–2023 to ensure convenient and
faster mobility.

Source: Ministry of Railways, News Article, PIB, Make in India Portal

10
Power generation capacity has increased at a healthy pace

▪ As on March 2024, India’s total installed electricity generation capacity stood

Installed electricity generation capacity (MW)
at 700 MW.
▪ As of February 2023, India’s installed renewable energy capacity has
CAGR 5.55%
increased 396% in the last 8.5 years and stands at more than 174.53 Giga
Watts (including large Hydro), which is about 42.5% of the country’s total 500
capacity.
▪ As of May 2023, the installed solar, wind and other renewable energy 450
capacity has increased by 30.2% and stands at 125.69 GW.

432.00
▪ The cumulative FDI equity inflow in the Power sector is US$ 18.28 billion 400

417.66
399.49
during the period April 2000 to March 2024. This constitutes 2.69% of the

382.15
total FDI inflow received across sectors.

370.11
350

356.10
▪ For 2023-24, the total budgetary allocation towards the Ministry of Power

344.00
326.84
stood at Rs. 1,96,035 crore (US$ 23.83 billion). 300
▪ In fiscal year 2022-23, India commissioned 10 thermal power units of an

280.33
aggregate 7,010 MW capacity. 250
▪ Cumulatively 39 thermal power plants with a capacity of 27,550 MW are
under construction and will likely take another four years to complete. 200
▪ India’s power consumption grew by 13.31% on an annual basis to 127.39
billion units (BU) in September 2022 and 11.65% in H1 FY23. 150
▪ Thermal power plant load factor or capacity utilization will improve to 63% in
FY24, fueled by strong demand growth along with subdued capacity addition 100
in the sector.
▪ As part of the Interim Budget 2024-25, the allocation for solar power grid 50
reached Rs. 8,500 crores (US$ 1.02 billion) from the previous allocation of
Rs. 4,970 crores (US$ 598.80 million). 0
▪ In February 2024, as part of the Pradhan Mantri Suryodaya Yojana, the
FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24*
government announced of installing rooftop solar panels in 1 crore
households to gain upto 300 units of free electricity each month.

Note: * - As on January 2024, MW - Megawatt

Source: CEA (Central Electricity Authority), News Articles

11
Key private players

Major projects: Meerut Budaun Six Lanes Expressway, Kaithal Rajasthan Four Laning project on NH

1 152/65, Mumbai-Pune BOT Project, Pune-Nashik BOT Project, Bharuch-Surat BOT Project, Thane-
Bhiwandi by-pass 4 Lane Project, Thane Ghodbunder BOT Project, Ahmedabad-Baroda NH-8, 6
laning of Agra - Etawah bypass, Gandeva-Ena section of Vadodara-Mumbai 8 lane expressway

Major projects: Aroor to Thuravoor Thekku section of NH 66, Bundelkhand Expressway

2 Project Belgaum to Sankeshwar bypass, Link Road NH-166 S to Mopa Airport, Memmadpur
(Ambala) – Banur (IT City Chowk) –Kharar (Chandigarh) Corridor, Four laning of Arrah to
Pararia section of NH-319, Four laning of Pararia to Mohania section of NH-319

Major projects: Ramban Banihal Road Project, J&K, Coastal Road Project, Mumbai, NH-34 -
Bahrampore – Farakka Highway, West Bengal, NH-34 - Farakka - Raiganj Highway, West
3 Bengal, Bandra-Worli Sea Link, Badarpur Elevated Highway Project, Delhi Faridabad
Elevated Expressway, Breakwater construction for new port at Ennore, Chennai

Agra Lucknow Expressways—Uttar Pradesh, Outer Ring Road, Hyderabad Growth

4 Corridor—Telangana, Nagpur Mumbai Express Way, Pune Metro Package 1 & 2, Nagpur
Metro, Chennai Metro, Delhi Metro, 4 Lane Elevated Highway Project on NH-7 in
Bangalore City

Major Projects: Medical College & Hospital at Golaghat, Assam, Commercial office space in Bengaluru,

5 Data centres in Mumbai, Police reserve campus in Guwahati, Transmission lines in Gujarat, Delhi
Metro Rail construction and design, Manufacturing facility in Haryana, Irrigation projects in Odisha

Source: Company websites and News Articles

12
STRATEGIES ADOPTED

13
Strategies adopted

▪ Larsen & Toubro (L&T) to form L&T Green Energy Council, a think-tank comprising of eminent thought leaders, in
a significant step towards building a global green energy business.
▪ In January 2023, Larsen & Toubro announced the signing of an MoU with the Norway-based H2Carrier (H2C) to
cooperate towards developing floating green ammonia projects for industrial-scale applications with an aim to
decarbonize the global economy.
▪ In January 2023, the Construction arm of Larsen & Toubro secured orders for its power transmission &
distribution and buildings & factories businesses to establish a 112.5MW Solar Power Plant in West Bengal and to
construct a 600-bed super speciality hospital at Mumbai, respectively.

▪ In August 2023, Bharat Heavy Electricals Ltd. (BHEL) and Greenstat Hydrogen India Pvt. Ltd. (GHIPL) signed an
MoU for ‘Potential Collaboration Opportunities in Green Hydrogen and Derivatives in the Hydrogen Value Chain’.
This MoU will help in contributing towards the country's 'National Hydrogen Mission' aimed at making India
'AatmaNirbhar' in this area.
▪ In December 2022, BHEL formed a consortium with Titagarh Wagons and is among five entities which have bid
for the mega Rs. 58,000 crore (US$ 7 billion) contract to manufacture 200 Vande Bharat trains and maintaining
them for the next 35 years.

▪ In December 2022, GMR Airports Limited and NIIF announce partnership to invest in three airports. NIIF to invest
INR 6310 billion (US$ 76.1 billion) in upcoming greenfield airport at Mopa, North Goa.
▪ In 2020, GMR Hyderabad International Airport Ltd (GHIAL) has signed a concession agreement to commission,
operationalise and maintain the civilian enclave at the Bidar airport in North Karnataka.

▪ In November 2022, Adani Ports and Special Economic Zone Ltd (APSEZ), the largest transport utility in India, has
entered into a definitive agreement for the acquisition of Oiltanking India GmbH’s 49.38% equity stake in Indian
Oiltanking Ltd (IOTL), which is one of India’s largest developer and operator of liquid storage facilities.

Source: Company websites, Media sources

14
GROWTH DRIVERS AND OPPORTUNITIES

15
Growth drivers for Infrastructure in India

1. Government initiatives 5. Public Private Partnerships (PPP)

• The government launched the PM Gati Shakti • In January 2024, The government of Maharashtra and
National Master Plan (NMP) in 2021 which NTPC Green Energy Limited (NGEL) have inked a
plans to allocate US$ 1.3 trillion by cutting Memorandum of Understanding (MoU) for the
logistic costs, increase cargo handling capacity development of green hydrogen and its derivatives
and minimize turnaround time. (green ammonia, green methanol) with a maximum
• The National Infrastructure Pipeline (NIP) was capacity of 1 MT annually. This includes the
introduced that looks at over 9,000 projects development of 2 GW of pumped storage projects as
across 34 sectors with an outlay of US$ 1.2 5 well as 5 GW of renewable energy projects in the
trillion between 2020-25.
1 state, either with or without storage. An investment of
Rs. 80,000 crores (US$ 9.64 billion) is possible.

2. Infrastructure needs
• According to World Bank, By 2036, 600 million
people will be living in urban cities in India,
representing ~40% of the population. This is
2 4 4. International investment
likely to put additional pressure on the already
stretched urban infrastructure and services of • FDI in construction development
Indian cities – with more demand for clean (townships, housing, built-up infrastructure
drinking water, reliable power supply, efficient and construction development projects)
and safe road transport amongst others. 3 and construction (infrastructure) activity
sectors stood at US$ 26.61 billion and
US$ 33.91 billion, respectively, between
April 2000-March 2024.
3. Housing development • FDI rules have been significantly
liberalized in India and can provide foreign
• Under the PM Awas Yojana, the government investors with options aligned with their
has built around 3 crore houses out of which business goals.
75 lakh houses have already been delivered to
the beneficiaries.
• The government plans to launch a loan subsidy
scheme offering a subsidy between 3-6.5% for
the lower income groups.

Source: News articles, DPIIT

16
Government initiatives driving growth in the sector

3. CONSTRUCTION
▪ Under Interim Budget 2024-25, capital investment outlay for infrastructure has
2. ROADS AND AIRPORT been increased by 11.1% to Rs.11.11 lakh crore (US$ 133.86 billion), which
• In the Interim Budget 2024-25, the government would be 3.4 % of GDP.
has decided to allocate Rs. 2.76 lakh crore ▪ Any construction sector investment impacts 275 linked building materials,
(US$ 33.4 billion) towards the Ministry of components and machinery industries, and the sector accounts for 8.2% of the
Roads for 2024-25. economy.
• In March 2024, the Minister of Civil Aviation ▪ According to the ministry, as of January 2023, work orders had been issued for
and Steel announced inaugurating 15 airport 7,804 Smart Cities Mission projects valued at Rs 1,81,322 crore (US$ 21.9
projects worth US$ 12.1 billion by 2028. billion). Of these, 67.22 % or 5,246 projects valued at Rs 98,796 crore are
• In India 158 Airports are operational and with complete and 32.77 %, or 2,558 projects valued at Rs 82,526, are expected to
construction of 84 airports over the last be complete by June 2024.
decade, India's aviation network is rapidly
evolving and over 1.36 crore people have
already travelled till March 13, 2024.
4. TELECOM, ENERGY AND
1. RAILWAYS AND METRO RAIL POWER
• As per the Interim Budget 2023-24, a ▪ India is implementing many programmes for
capital outlay of Rs. 2.55 lakh crore green fuel, green energy, green farming,
(US$ 30.72 billion) has been made for green mobility, green buildings, and green

•
the Railways, an increased of 5.8% over
the previous year.
On March 12, 2024, Prime Minister
2 3 equipment, and policies for efficient use of
energy across various economic sectors.
▪ Also, the Interim Budget 2024-25 allocated
flagged off 10 new Vande Bharat trains. Rs. 1,11,876.6 crore (US$ 13.5 billion) for
• An UIDF will be established through the the Department of Telecom.
use of priority sector lending shortfall, ▪ National Institute of Ocean Technology
which will be managed by the National under the Ministry of Earth Sciences is
Housing Bank, and will be used by
public agencies to create urban
1 4 implementing an Ocean Thermal Energy
Conversion desalination plant at Kavaratti in
infrastructure in Tier 2 and Tier 3 cities. Lakshadweep, powered by about 65 kW
power generated from OTEC.

Source: Union Budget 2023-24, Media sources, Interim Budget 2024-25

17
Affordable Housing

Atal Mission for Tax benefit

Rejuvenation and • The government provided policy impetus
to achieve the ‘Housing for All by 2022’
Urban vision through various measures such as
extension of tax relief for the affordable
Transformation housing segment.
• As per Union Budget 2021, the
(AMRUT) and government announced a tax proposal
for an additional deduction of Rs. 1.5 lakh
Smart Cities (US$ 2.06 thousand) shall be available
for loans taken up until March 31, 2022,
Mission for purchase of affordable house.

• In Union Budget 2023-24, the Indian

government allocated Rs.8,000
crore (US$ 973 million) for Smart
Cities Mission.
• As of December 2022, 64% of the
smart city projects had been
completed, with a total project worth
of Rs.92,439 crore (US$ 11 billion).

Ministry of Housing and

Urban Affairs
• In the Interim Budget 2024-25, the government announced
Rs. 77,523.58 crore (US$ 9.3 billion) to the Ministry of
Housing and Urban Affairs.

Source: Union Budget 2023-24, Media sources, Interim Budget 2024-25

18
Infrastructure development in northeast India

▪ Investing in infrastructure would generate employment and would play a major role in thwarting secessionist movements in the Northeast region.

▪ In Budget 2023-24, there have been significant increases in the Ministry of Development of North Eastern Region (MDoNER) Scheme-wise outlays,
that will increase the impact in infrastructure, social-development and livelihood sectors in the NER.

▪ Finance minister Nirmala Sitharaman's Budget for 2023-24 underlines sustained focus on the northeast for "inclusive development" as one of the
seven priorities, which act as the 'Saptarishi' guiding the government "through the Amrit Kaal“.

▪ Budget 2023-24 highlights:

• For FY24, the budgetary allocation for the Ministry of Development of Northeastern Region stood at Rs. 5892 crore (US$ 711 million).

• Rs. 2,200 crore (US$ 265.5 million) allocated for Prime Ministers Development Initiative for North-East (PMDevINE) Scheme.

• Rs. 2491 crore (US$ 300.6 million) was allocated to North East Special Infrastructure Development Scheme (NESIDS).

▪ In 2022, India’s Finance Minister announced the execution of several rail, road and air connectivity projects worth Rs. 1,34,200 crore (US$ 16.2
billion) in the northeast.

▪ 4,000 km of roads, 20 railway projects for 2,011 km and 15 air connectivity projects are being developed.

▪ National waterways on the Ganges, Brahmaputra and Barak rivers (National Waterways (NW)-1 on the Ganges, NW-2 on the Brahmaputra and
NW-16 on Barak) are under development to provide better connectivity.

▪ As the cost of travel by water is the least when compared to air, road and rail networks, the riverine systems of India and Bangladesh can be
leveraged for all types of transportation.

▪ Along the Brahmaputra River, the development of the entire area between Sadiya and Dhubri in Assam is ongoing for improved connectivity.

▪ Multimodal hub that includes a ship repairing port at Pandu, four tourist jetties, and 11 floating terminals on the Brahmaputra in Guwahati is under
construction.

▪ North Eastern Region Power System Improvement Project (NERPSIP) is a major step towards economic development of the North Eastern Region
through strengthening of Intra - State Transmission and Distribution systems.

Source: Union Budget 2023-24, Media sources

19
Logistics and warehousing
▪ India’s logistics market is estimated to reach US$ 410.75 billion in 2022
and is expected to reach US$ 556.97 billion by 2027, growing at a
CAGR of 6.28%. Logistics market size
▪ India intends to raise its ranking in the Logistics Performance Index to
(US$ billion)
25 and bring down the logistics cost from 14% to 8% of GDP, leading to
a reduction of approximately 40% by 2028. 500
▪ The logistics sector has attracted investments of Rs. 8,257 crore (US$
997.4 million) since the beginning of the year 2022. 450
▪ The growth of third-party logistics is the second-largest incentive

435.4
400
causing the rise in demand for warehouses.

410.8
▪ The warehousing market in India is expected to grow to Rs. 2,243.79 350
billion (US$ 27 trillion) by 2026, expanding at a CAGR of 10.90%, as
per the Warehousing Market in India 2022 Report. 300
▪ Real estate PE investments registered an increase of 28% in Q1 FY23
as compared to Q1 FY22 driven by improved market sentiments, 250
widespread vaccine coverage, and the lifting of lockdown restrictions
helped this revival. 200

215.0
▪ In 2021, the Government’s Bharatmala project focused on establishing
35 multimodal logistics parks throughout the country, with four proposed 150

160.0
for development in Maharashtra under the Public-Private Partnership.
100
Such a mix of logistics operations is expected to boost the logistics and
warehouse operations in the country.
50
▪ In addition, with India’s significant policy changes, the interest of foreign
investors to increase their footprint in the country by way of investments 0
in the warehousing and logistics sectors has witnessed an uptick. 2017 2020 2022 2023*
▪ In 2021, the 3PL (third-party logistics) sector acquired the maximum
warehousing space, succeeded by e-commerce. Due to increasing
Foreign Direct Investments and relaxed policy reforms, the agriculture
and manufacturing sectors will continue to increase 3PL warehousing
demand.

* : Provisional
Source: Economic Survey, KPMG Report, News Articles

20
Airports infrastructure investment

1
Metro airports
▪ Upgradation/ Modernisation of airports' infrastructure is undertaken by the Airports Authority of India (AAI) and other Airport
Developers from time to time depending on the availability of land, commercial viability, socio-economic considerations, traffic
demand/willingness of airlines to operate to/from such airports.
▪ In March 2024, the Minister of Civil Aviation and Steel announced inaugurating 15 airport projects worth US$ 12.1 billion by 2028.
▪ In December 2022, AAI and other Airport Developers have targeted a capital outlay of approximately Rs. 98,000 crore (US$ 11.8
billion) in the airport sector in the next five years for expansion and modification of existing terminals, new terminals and
strengthening of runways, among other activities.
▪ Delhi, Bangalore, Hyderabad, Lucknow, Mangaluru, Guwahati and Ahmedabad airports have earmarked a capital expenditure of
Rs.10,550 crore (US$ 1.2 billion), Rs.13,552 crore (US$ 1.6 billion), Rs. 6,288 crore (US$ 759 million), Rs.1,383 crore (US$ 167
million), Rs.567 crore (US$ 68.4 miilion), Rs.1,232 crore (US$ 148.7 million) and Rs.376 crore (US$ 45.3 million), respectively for
the period 2019-25.

2
Non-metro airports
▪ The Budget 2023-24 allocated Rs. 3,113.36 crore (US$ 375.7 million) to the union civil aviation ministry.
▪ Under Budget 2023-24, 50 additional airports, heliports, water aerodromes and advanced landing grounds will be revived for improving
regional air connectivity.
▪ Civil Aviation Ministry’s “Vision 2040” report states that there will be 190-200 functioning airports in India by 2040. Delhi and Mumbai will
have three international airports each, while the top 31 Indian cities will have two operational airports each.
▪ In the last five years (2017-2022), UDAN has significantly increased the regional air connectivity in India with the number of operational
airports increased to 141 as of August 2022.
▪ Under the UDAN scheme, 68 underserved/unserved destinations which include 58 Airports, 8 Heliports & 2 Water Aerodromes have
been connected.
▪ 220 destinations (airports/heliports/water aerodromes) under UDAN are targeted to be completed by 2026 with 1000 routes to provide
air connectivity to unconnected destinations in India.

Source: Media sources, PIB

21
Metro rail and monorail infrastructure investment

1
Metro rail
▪ India currently has the fifth-largest metro network in the world and will soon overtake advanced economies such as Japan and
South Korea to become the third-largest network.
▪ Metro rail network reached 810 kms and is operational in 20 cities.
▪ Metro network of 980 kms and Regional Rapid Transit System (RRTS) is currently under construction in 27 cities.
▪ In February 2023, Bharat Earth Movers Limited (BEML) signed the MoU with DMRC-led SPV to construct the Bahrain Metro Rail
Project Phase-1.
▪ In February 2023, Afcons Infrastructure commenced construction on the diaphragm wall (D-wall) for Kolkata Metro Line-6 (Orange
Line)’s underground airport tunnel as a component of Package ANVS-RVNL-1682.
▪ In the last 10 years, 697 km have been added to Metro Rail Network across the country. In 2024, about 945 km of metro rail lines
are operational in 21 cities and 919 km is under construction in 26 different cities.

2
Monorail
▪ At almost 20 kms, Mumbai monorail is the third largest route in the world after China with 98 kms and Japan with 28 kms.
▪ In March 2019, Mumbai Metropolitan Region Development Authority (MMRDA) commissioned the operations of the second phase
of the 19.54 km monorail project after it took over the operations and maintenance of the project.
▪ Japan International Co-operation Agency (JICA) assured technical assistance in urban monorail projects, intelligent transport
systems, Regional Rapid Transit Systems, transit-oriented development for preparing master plan and detailed project reports for
other urban infrastructure projects.

Source: Media sources

22
Increasing investments in Indian infrastructure

▪ The National Infrastructure Pipeline (NIP) for 2019-2025 is a first-of-its-kind, whole-of-government exercise to provide world-class infrastructure to
citizens, improving their quality of life.
▪ Infrastructure is the backbone of any country. Its development implies growth in all sectors of the economy, not to mention real estate, an indirect
beneficiary of every headwind in infrastructure sector. The PM Awas Yojna and the extended credit-linked subsidy scheme address the
affordability concern by provisioning increment in the PM Awas Yojna by 66% to 79,000 crores and extension of CLSS till 2027.
▪ FDI in construction development (townships, housing, built-up infrastructure and construction development projects) and construction
(infrastructure) activity sectors stood at US$ 26.61 billion and US$ 33.91 billion, respectively, between April 2000-March 2024.
▪ In January 2023, the Construction arm of Larsen & Toubro secured orders for its power transmission & distribution and buildings & factories
businesses to establish a 112.5MW Solar Power Plant in West Bengal and to construct a 600-bed super speciality hospital in Mumbai,
respectively.
▪ In December 2022, BHEL formed a consortium with Titagarh Wagons and is among five entities which have bid for the mega Rs. 58,000 crore
(US$ 7 billion) contract to manufacture 200 Vande Bharat trains and maintain them for the next 35 years.
▪ In December 2022, Mr. Nitin Gadkari, Minister of Road Transport and Highways inaugurated and laid the foundation stone of 8 National Highway
projects of 226 km length worth Rs. 1,800 crore (US$ 217.4 million) at Igatpuri, Nashik, Maharashtra.
▪ In December 2022, Mr. Nitin Gadkari, Minister of Road Transport and Highways inaugurated 7 National Highway projects worth Rs. 2,444 crore
(US$ 295 million) with a total length of 204 km in Rewa, Madhya Pradesh.
▪ In November 2022, the Prime Minister of India laid the foundation stone of various road projects worth over Rs. 2200 crore (US$ 2.6 billion),
namely the Medak-Siddipet-Elkathurthy section of NH-765DG; Bodhan-Basar-Bhainsa section of NH-161BB; Sironcha to Mahadevpur Section of
NH-353C in Telangana.
▪ In October 2022, National Highways Infra Trust (NHAI InvIT), the infrastructure investment trust sponsored by the National Highway Authority of
India (NHAI) to support the Government of India's National Monetization Pipeline, raised a sum of Rs. 1,430 crore (US$ 172.6 million) from
domestic and international investors through the placement of its units, for part funding its acquisition of three additional road projects from NHAI.
▪ As many as 52 critical infrastructure gap projects identified by MoPSW for connecting maritime ports and IWTs (Inland Waterway Terminals) to be
taken up under PM Gati Shakti National Master Plan. Currently, the DPR of a total of 56 projects (including 11 IWT projects) under this category
with a total of 1215 km length are under the bidding stage for the feasibility assessment of these projects, which is being carried out by NHAI.

Note: FDI - Foreign Direct Investment

Source: DPIIT, Media sources, EY, PIB

23
Key highlights of Interim Budget 2024-25

▪ The Central government has increased its capital expenditure (capex) allocation to US$ 133.9 billion (Rs. 11.11 trillion) for the fiscal year
beginning April 1, 2024, with a focus on advancing India's infrastructure, as part of a strategic move to stimulate economic growth. An increase of
11.1% from the previous year, the FY25 interim budget allots US$ 133.9 billion (Rs. 11.11 trillion) for capital expenditures, or 3.4% of GDP.

▪ With a 37% increase in the current fiscal year, capital expenditures (capex) are on the rise, which bolsters ongoing infrastructure development and
fits with Vision 2027 goals for India's economic growth to become a US$ 5 trillion economy. In order to anticipate private sector investment and to
address employment and consumption in rural India, the budget places a strong emphasis on the development of roads, shipping, and railways.

▪ India's ambitious plan calls for spending US$ 1.723 trillion (approximately Rs. 143 trillion) on infrastructure between FY24 and FY30, with a
particular emphasis on power, roads, and developing industries like renewable energy and electric vehicles.

▪ Prime Minister Mr. Narendra Modi emphasized that India is committed to attaining net-zero carbon emissions by 2070, and that the country's
ambitious goal of 500 gigawatts (GW) of renewable capacity by 2030 should be met. In order to make this possible, he unveiled a plan to raise the
proportion of gas in India's energy mix to 15% by 2030, which will involve spending roughly US$ 67 billion over the course of the following five to
six years.

▪ In Interim Budget 2024-25, capital investment outlay for infrastructure has been increased by 11.1% to Rs.11.11 lakh crore (US$ 133.86 billion),
which would be 3.4 % of GDP.

▪ The government has decided to allocate Rs. 2.76 lakh crore (US$ 33.4 billion) towards the Ministry of Roads for 2024-25.

▪ A capital outlay of Rs. 2.55 lakh crore (US$ 30.72 billion) has been made for the Railways, an increased of 5.8% over the previous year.

▪ The allocation for solar power grid reached Rs. 8,500 crores (US$ 1.02 billion) from the previous allocation of Rs. 4,970 crores (US$ 598.80
million).

▪ The Interim Budget 2024-25 allocated Rs. 1,11,876.6 crore (US$ 13.5 billion) for the Department of Telecom.

▪ The government announced Rs. 77,523.58 crore (US$ 9.3 billion) to the Ministry of Housing and Urban Affairs.

▪ Three significant economic railway corridor initiatives—energy, port connectivity, mineral and cement, and high traffic density—will be carried out
by the railway industry. Additionally, in order to improve passenger safety, convenience, and comfort, forty thousand standard rail bogies will be
converted to Vande Bharat standards.

Source: Interim Budget 2024-25.

24
Key highlights of Interim Budget 2024-25

▪ In the aviation sector, the number of airports has doubled to 149, and currently, 1.3 crore passengers are transported on 517 new routes. Indian
airlines have taken the initiative to order more than a thousand new aircraft.

▪ As part of the PM Awas Yojana (Grameen), two crore more houses to be taken up in the next five years. Despite COVID challenges, the target of
three crore houses under PM Awas Yojana (Grameen) will be achieved soon.

Source: Interim Budget 2024-25.

25
Opportunities in Infrastructure

Urban Indian real Government initiatives

• National Highways had increased from
estate 91,287 km in 2013-14 to 1,46,145 km in
2023-24, and the pace of construction
• As a result of digitalisation and
had improved from 12.1 km a day in
opportunities that tier II and III
2014-15 to 42.03 km in FY23.
cities present for economic
• In November 2022, National Investment
growth, the divide between metro
and Infrastructure Fund (NIIF) is set up
and non-metros is blurring,
as a collaborative investment platform
moving to the new era of
between the Government of India, global
infrastructure growth.
investors, multilateral development
• Commercial real estate properties
banks (MDB) and domestic financial
have witnessed exponential
institutions to facilitate investment across
growth in demand across Tier II &
multiple sectors in India through an India
III cities as Information technology
Japan Fund.
and Information technology-
• In March 2024, The Minister of Road
enabled services and banking
and Highways inaugurated 15 national
financial services and insurance-
highway projects worth Rs. 4,000 crores
focused organizations are
(US$ 481.93 million) in Himachal
increasingly decentralizing their
operations to adapt to the new National Infrastructure •
Pradesh.
In February 2024, The Minister of Road
normal.
• The residential sector has Pipeline and Highways inaugurated and laid the
foundation stone for 18 national highway
witnessed good sales, and
• Started with 6,835 projects, the NIP project count now projects woth Rs. 7,290 crores (US$
launches have also shown signs
stands at 9,142 covering 34 sub-sectors, as per news 878.31 million) in Karnataka.
of an uptick during 2022, total
reports. • In October 2021, the Dubai government
sales in the top-7 cities were
• Under the initiative, 2476 projects are under development and India signed a contract in October
projected to exceed 360,000 units
phase with an estimated investment of US$ 1.9 trillion. 2021 to build infrastructure in Jammu
in 2022.
Nearly half of the under-development projects are in the and Kashmir, including industrial parks,
transportation sector, and 3,906 in the roads and bridges IT towers, multipurpose towers, logistics
sub-sector. centres, medical colleges, and
specialized hospitals.

Source: Media sources, Ministry of Finance, M-SIPS - Modified Special Incentive Package Scheme, EDF - Electronics Development Funds, PIB

26
Key Industry Contacts

27
Key industry contacts

Agency Contact Information

Address: G 5 and 6, Sector 10, Dwarka

National Highways Authority New Delhi - 110 075
of India (NHAI) Phone: 91-11-25074100, 25074200
Fax: 91-11-25093507, 25093514
Website: nhai.gov.in

Address: Rajiv Gandhi Bhawan, Safdarjung Airport,

Airports Authority of India New Delhi - 110003
(AAI) Tel: 91-11-24632950
Website: www.aai.aero

Infrastructure Industry And Address: P-95, South Extension Part - II

Logistics Federation of India New Delhi - 110049
(ILFI) Phone: 91-11-41007091
Fax: 91-11-41007093
Email: dgoffice@ilfi.in, ilfi@ilfi.in
Website: www.ilfi.in

28
Appendix

29
Glossary

▪ FY: Indian Financial Year (April to March) - So, FY11 implies April 2010 to March 2011

▪ FDI: Foreign Direct Investment

▪ CAGR: Compounded Annual Growth Rate

▪ GOI: Government of India

▪ R&D: Research and Development

▪ JV: Joint Venture

▪ SEZ: Special Economic Zone

▪ BOT: Build-Operate-Transfer

▪ IBEF: Indian Brand Equity Foundation

▪ NHAI: National Highways Authority of India

▪ PPP: Public-Private-Partnership

▪ Wherever applicable, numbers have been rounded off to the nearest whole number

30
Exchange rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$

2004-05 44.95 2005 44.11

2005-06 44.28 2006 45.33
2006-07 45.29 2007 41.29
2007-08 40.24 2008 43.42
2008-09 45.91 2009 48.35
2009-10 47.42 2010 45.74
2010-11 45.58 2011 46.67
2011-12 47.95
2012 53.49
2012-13 54.45
2013 58.63
2013-14 60.50
2014 61.03
2014-15 61.15
2015 64.15
2015-16 65.46
2016 67.21
2016-17 67.09
2017 65.12
2017-18 64.45
2018 68.36
2018-19 69.89
2019 69.89
2019-20 70.49
2020 74.18
2020-21 73.20
2021 73.93
2021-22 74.42 2022 79.82
2022-23 78.60 2023 82.61
2023-24 82.80 2024* 83.21

Note: *- Until April 2024

Source: Foreign Exchange Dealers’ Association of India

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32