Over the years since its independence, India has witnessed several bursts of infrastructure build-up, with each phase being impeded by different kinds of hindrances. However, the 1991 economic reforms opened the doors of the Indian economy to foreign investors who had always wanted to capitalize on the massive potential of the vast Indian market. Since then, the experience of the last two decades has been tangibly different from the past and infrastructure has received a significant boost.
With India becoming a part of the globalized economy and its massive population of 1.3 billion people, there is an immense need to ramp up India’s infrastructure sector and give it the much-needed boost that it needs to cater to the needs of such a large population. Also, a growing economy which is expected to be the second largest economy in the world by 2050 after China has made it necessary for the Indian government to focus on boosting India’s infrastructure so that it can be at par with other significant economies.
According to the Department of Industrial Policy and Promotion (DIPP), the Construction Development Sector (housing, townships, construction development projects, and built-up infrastructure) received a Foreign Direct Investment (FDI) of USD 24.91 billion between April 2000 to December 2018.
India’s urban population of approximately 450 million is slated to go up to almost 600 million by 2030. Therefore, the need to enhance India’s infrastructure in some of the premier cities like Delhi, Bangalore, Mumbai, and Kolkata is especially acute. Also, by 2030, there shall be around 68 cities with over 1 million residents in each one of them. Such a rapid rate of urbanization would also warrant massive investments in everything ranging from water and power sector to efficient metro systems and affordable housing.
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