In the financial years 2024 and 2030, India will invest 143 trillion rupees in infrastructure. With an average gross domestic product growth rate of 6.7% through FY31, India is predicted to have the fastest-growing economy. Until fiscal 2031, per capita income is anticipated to increase from $2,500 to $4,500, ushering in the era of middle-income nations. Massive overall infrastructure development, with a strong emphasis on incorporating sustainability, would support the increase.
The amount of green investments is anticipated to increase by five times from 2017 to Rs 36.6 trillion. The average ticket size of projects will increase, and there will be a considerable number of mega-scale projects, in the upcoming phase of infrastructure development. An appealing argument for various stakeholders to accelerate investments across infrastructure sectors is created by appropriate and consistent policy and regulatory interventions and a focus on timely execution.
Significant industries like power and highways are anticipated to continue to play a significant role, while relatively new ones like electric vehicles (EVs), solar, wind, and hydrogen are anticipated to expand gradually.
By 2030, the share of electric vehicles in India’s overall auto sales is predicted to be 30%. By 2028, EV two-wheeler sales are anticipated to surpass those of other segments. While green fuel investments will increase, it’s important to take advantage of cutting-edge technologies like green hydrogen, offshore wind technology, and “floatovoltaics” (floating solar).
Between FY2024 and FY2030, the hydrogen industry is expected to draw considerable investments totalling Rs 1.5 trillion, backed by government incentive programs. Given that producing green hydrogen costs twice as much as producing hydrogen from fossil fuels, mandates for its use and incentive programs will be crucial in this situation. The majority of fundamental infrastructure industries demand sizable investments, which can be fulfilled by boosting bond market activity, increasing foreign investor interest, and having healthy equity
markets.