The future of infrastructure is envisioned to be more digital, sustainable, and equitable. Experts predict a shift from purely physical structures to a blend of physical-digital infrastructure, with a focus on broadband, autonomous vehicles, and smart infrastructure. There’s also a new emphasis on environmental considerations and broad social benefits.
India’s infrastructure sector is experiencing robust growth, driven by large investment requirements projected by the Government of India. The focus is on providing infrastructure that meets specified norms and supports the country’s growth process. Major infrastructure sub-sectors such as transport, energy, and construction are seeing significant developments.
The construction industry, in particular, is a cornerstone of India’s infrastructure expansion, with projects ranging from highways and bridges to urban development initiatives.
Financing opportunities in the infrastructure sector are expanding, with various trends and government initiatives shaping the landscape. The National Infrastructure Pipeline is one such opportunity that outlines the government’s vision for infrastructure development.
Governments and Development Finance Institutions (DFIs) are exploring innovative approaches to establish infrastructure as an investible asset class. These include increasing the availability of funds from both domestic and international capital providers, preparing projects better, and de-risking investments through a range of financing mechanisms.
Private finance plays a crucial role in meeting tomorrow’s infrastructure financing needs, especially in emerging markets. Efforts are being made to direct more private finance into infrastructure projects by improving project preparation and using financing models that mitigate investment risks
