Got some nuts and bolts?

India's vast population, industrial growth and rapidly growing middle class - with an insatiable appetite for road and air travel - put massive pressure on the country's infrastructure.

Everywhere in India, visitors encounter traffic jams, potholed roads and crowded airports and railway stations.

But increasingly they also see huge construction projects from metro systems to elevated expressways and airport terminals in all the major centres.

India is undertaking a substantial programme of investments in infrastructure that will underpin its growth in years and decades to come.

Historically, India has invested less in infrastructure than some other emerging markets and the major state-run projects were plagued with delays and cost over-runs.

But in recent years the Government of India has accelerated the pace of investment by opening the infrastructure sector to private investment through Public Private Partnerships.

Why is it important ?

Over the next 15 years the government plans to invest US$320 billion in upgrading ports, railroads, highways and airports.

Goldman Sachs recently estimated that India might need a total of US$1.7 trillion of finance for infrastructure investment over the next 10 years.

This represents a substantial improvement in the pace of infrastructure development. From five per cent of GDP in 2006-2007 investment in infrastructure is expected to rise to nine percent by 2012.

What are the opportunities?

Among the highlights, the government intends to invest in 300 airstrips and airfields through PPPs. The Ministry of Civil Aviation is planning to develop 35 greenfields airports at a cost of US$35 billion and to upgrade of a further 35 existing non-metro airports.

The government has identified 276 projects to improve the country's ports entailing an investment of US$ 12 billion

Investment in roads during the Eleventh Plan period (2007-2012) is projected to total over US$93 billion dollars. Over the period 2006-2030 the International Energy Agency estimates that India will need to invest almost US$1 trillion in power infrastructure.

The government is also strongly committed to upgrading rural infrastructure, including roads, bridges and irrigation systems.

 

Most of these projects will be led by large Indian and multinational construction companies.

 

For New Zealand exporters the opportunities will probably lie in supplying the PPPs with specialised equipment and expertise

 

This might involve providing project consultancy services for roading, ports or electricity infrastructure, specialised equipment for baggage and cargo handling systems, air traffic control systems, components for power transmission and distribution equipment, and much more.

 

It's just a question of finding a niche - and having the local knowledge and contacts to pursue it.

 

India Horizonz can help you make contact with the 'movers and shakers' of India's infrastructure boom, from setting up high-quality appointments to brokering deals to supply services or equipment to PPPs. Do you have the know-how or technology to accelerate India's infrastructure boom? Contact us.