India Infra Sector - An Undeniable Growth Opportunity Constrained By Fiscal Stress: Systematix

India Infra Sector - An Undeniable Growth Opportunity Constrained By Fiscal Stress: Systematix

Cranes stand between high rise buildings. (Photographer Luke MacGregor/Bloomberg)

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Systematix Research Report

Infrastructure development is the need of the hour for India to achieve its $5 trillion gross domestic product target by 2025. While the government has spent heavily through budgetary allocations over the past few years, challenges on the fiscal front constrain an all-out infrastructure capex-driven stimulus.

The centre has launched an ambitious plan of spending Rs 111 trillion through the National Infrastructure Pipeline.

It has unfurled other initiatives such as ‘Make in India’ and the production-linked incentives scheme to boost India’s competitiveness globally, which also calls for an infrastructure upgrade.

We estimate the overall infrastructure capex to grow at a compound annual growth rate of 11.4% over FY21-26E – primarily due to spending on water supply, transport and urban infrastructure, against the 19.4% CAGR witnessed over FY13- 19.

Click on the attachment to read the full report:

Systematix India Infrastructure - Sector Report.pdf
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