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India represent an industry that is creating, building and assembling a new 21st century driven by yearnings of tens of millions who look for a superior life, livelihood, employment and greater chance to expand their fantasies. Hidden in the string of Highways, Factories, Airports, Ports, Bullet rail project, Metro rail networks, Dams, Commercial (GIFT) & Residential towers, Nuclear power plants, Special Projects Smart city projects are the potential for India to grow rapidly and India will produce a mammoth opportunity for the construction industry. India’s planned investment for the 12th five-year investment plan is around 56.3 trillion INR out of which construction industry in the infrastructure is estimated around 47% of the total (26.7 trillion INR). 

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India is planning to spend much more money in coming three and seven-year infrastructure program which will completely focus on the new technologies & sustainability in the construction industry as well as green infrastructure. It has been estimated that India’s GDP will touch US$10 trillion by 2020. That translates into infrastructure investment of at least US$1 trillion a year. As India builds more to feed more dreams, both GDP and infrastructure investment will keep growing. Indian Government committed to ensuring that rapid growth does not happen at an untenably high environmental cost, and infrastructure projects will play a key role in ensuring the success of ‘green growth’. Such E&C companies taking a universal approach to building a sustainable infrastructure will have a strong competitive advantage.

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The policy counts on expanding the EPC & PPP concession model used to build new roads and significant new investment from the private sector to upwards of 50 percent of the cost, including an infusion from foreign players. The main hindrance for construction industries is a political risk, corruption, skilled manpower, specialized contractors, project delivery model, taxation system (GST) for domestic as well as a foreign player. The Indian government keeps trying to solve these hindrances to attract foreign players and foreign investment. The contracting companies have to realign their scaling strategies and focus on innovation, project management and profitable growth as compared to order and revenue growth. The companies, with fresh capital infusion, exhibited significant turnarounds with revenues multiplied significantly. We see huge infrastructure development programs in coming years which will create more opportunities for fresher who has innovative and sustainable solutions.

Ari Zingillioglu
Parth Patel
Lei Huang
Uddhav Chavan
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