Infrastructure sector is a key driver for the Indian economy. India needs Rs 31 trillion (US$ 465 billion) to be spent on infrastructure development over the next five years, with 70 per cent of funds needed for power, roads and urban infrastructure. An estimate of 18,637 km of expressways needs to be built by the end of the 13th Five Year Plan period i.e. 2022.
Policy makers are giving prime importance to the major areas which require infrastructural improvement :
With projected 12% increase in passenger traffic and 15% cargo traffic annually,the above mentioned career paths are likely to grow exponentially. Besides this, the Government of India plans to invest another USD 15-25 million in the coming years, to improve road infrastructure.
Spread over 64,015 km, the Indian Railway network is a major mode of transport for passengers and goods. The Indian Government is planning to invest USD 60 million, considering the capacity constraints in the rail system. Taking into account the current infrastructure, the government has initiated several projects such as:
Metro networks are also being developed in full swing with Delhi Metro Phases III (112 km) and IV (108.5 km) expected to be completed by 2021. New Delhi will then have a 413 km (257 mi) long stretch with Metro connectivity. Other major cities that will have Metro connectivity soon in Mumbai, Bangalore, Chennai, Kochi, Lucknow etc
Cargo traffic, is expected to reach 1,758 MMT by 2017 which was recorded 1,052 million metric tonnes (MMT) in 2015. India is the sixteenth largest maritime country in the world, with a coastline of about 7,517 km. The Indian Government plays an important role in supporting the ports sector. It has allowed Foreign Direct Investment (FDI) of up to 100 per cent under the automatic route for port and harbour construction and maintenance projects.
The Indian Aviation department has set up Airport Economic Regulatory Authority (AERA), which takes of the efficiency, pricing competiveness, and customer-focused service. The Government has already invested USD 10 billion on new airports and maintenance of existing airports. Government is emphising for air connectivity in TIER II cities in addition to metro cities which will lead to development of large scale development of airport infrastructure.