Infrastructure and Construction
More than two thirds of India’s future infrastructure capacity has not yet been built. This year’s government budget presented a 23% increase in infrastructure projects. It is expected that the private sector will contribute at least half to the planned $ 1 billion USD investments in infrastructure (12th plan, lasting from 2012-2017). The government encourages private sector participation in road infrastructure projects by offering benefits such as tax exemptions and duty-free import of construction materials for roads. FDI up to 100% is permitted under the automatic route for roads, highways, toll roads, bridges and road transport services. Railway initiatives that are high on the agenda include the construction of new lines, gauge conversion, doubling of lines, and improving the capacity of rolling stock, including locomotives and carriages. It is estimated that an investment of USD 22 billion is required over the next 10 years to upgrade carriages, tracks and communication/safety equipment in the Indian rail sector. Moreover, an investment of 33 billion USD is needed to modernize airports in the next 10 years. As the above data confirms, there are many interesting business opportunities in this sector.



