Investment opportunity of US$ 575 bn in India's transport infrastructure sector in next five years

Although the country has improved its transportation landscape over the last two decades, much remains to be done to meet the increasing demand now and in the years ahead, says a new report released by Kearney titled ?Harnessing the opportunities in India?s transportation infrastructure?.

The report highlights an investment opportunity of US$ 575 billion in transport infrastructure sector in India in the next five years. Roads and railways constitute 80 per cent of the total investment opportunity driven by investments in flagship projects such as Bharatmala Pariyojana, Dedicated Freight Corridor, High Speed Rail, etc. The report further highlights the delays in land acquisition, clearance, constraints in funding for infrastructure projects?, lack of efficient dispute resolution mechanism as key challenges in realising the investment opportunity.

Manish Mathur, Partner and Head Asia Pacific, Transportation and Infrastructure Practice for Kearney, said, ?Significant opportunities exist in various transportation infrastructure in India, prioritising the most important ones is of paramount importance. Although there are obstacles to realising the vast potential, these challenges can be overcome with a concerted and coherent strategy across the key stakeholders: Government authorities, concessionaires and contractors, and financial institutions.?

The report outlines key steps required from each of the stakeholder for overcoming the obstacles and maximising the opportunities:

?With a concerted effort, today?s challenges can be transformed into an opportunity that will not only boost organic growth, drive job creation, and aid a whole gamut of industries but also help fulfil one of the most basic tenets of economic and social activity: Mobility to serve the common good,? added Mathur.

Click here for the full report on ?Harnessing the opportunities in India?s transportation infrastructure?.?

Kearney is a leading global management consulting firm with offices in more than 40 countries. The firm focuses on strategic and operational CEO-agenda issues facing businesses, governments, and institutions around the globe. Founded in 1926, Kearney has been consistently ranked among the top management consulting firms globally.

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