India has the capability to tap countless sources to achieve sustained growth, says SANDEEP GULATI.
India wants to be a $5 trillion economy by 2024. To achieve this, it needs to grow at around 12 per cent per annum as compared to the current 6 per cent. It is a difficult dream, but not an impossible one.
The seed of this dream has been sown in the last five years. The government initiated ambitious plans, such as Make in India, Smart Cities, Housing for All, Pradhan Mantri Awas Yojana, among others. And, in the next five years, some of these plans will start bearing fruits. But for these dreams to be fully realised, there needs to be an inflow of foreign funds and private capital. However, it is a catch 22 situation, where without development, investments will not come and without investments, infrastructure will not be ready.
Hurdles to progress
The government is trying its best to play the role of a catalyst by funding most of the major infrastructure projects. These projects are crucial for making India the world’s manufacturing and services hub. China used to be the lucrative choice in the 70s, but today, Chinese facilities are overcrowded and are not as cost-effective. India could be that alternative to the saturation experienced by China.
The question then remains: If industries are to come, where will they set shop? The cities are already bursting at the seams.
Look at the situations in Delhi- NCR, Mumbai, Bengaluru and Hyderabad. The long traffic jams and high cost of living is already becoming a menace for the regular commuters. Would it be able to accommodate more investments? As per some projections available, India’s urban population was 410 million in 2014, which is set to nearly double to 814 million by 2050. In less than 30 years, India will be experiencing a tremendous population explosion in its urban areas that will be next to impossible to manage with the existing infrastructure.
Optimising Tier-II cities
There are vast areas adjoining these mega cities, which are close in proximity but away from economic development. These Tier-II cities need to be tapped as they are on the verge of an economic revolution.
The initiative of the government to develop 100 new airports was a giant step in this direction.
Airports at Kisangarh and Durgapur have opened vast untapped areas for industrialisation. It will not just create developed economic zones but will become the engines of growth for surrounding areas as well. It will have a contagious effect and slowly and steadily, will result in the spread of economic development.
Real-time issues
Although this is theoretically
appealing, it gives birth to questions
like – Where are the roads that
connect these areas and how
will water supply be taken care
of when the working population
migrates to these places?
The cities are struggling
to absorb the ever increasing
migration from rural India. The
Smart Cities project will help
solve some of the problems.
Egis is already working on three smart cities in the country – Bhubaneswar, Chandigarh and Ajmer. There are possibilities of many more cities, which could be realigned for better resource utilisation. Water will be another area where India will face a lot of issues. Water levels are falling and potable water is becoming a challenge.
Another area where India needs a lot of focus is developing tourism attractions. So far, India has been offering heritage as the main attraction. However, now tourists need a lot more, thereby generating higher opportunities in that area.
Focus areas
As more and more towns
get influenced by economic
development, they will need
structural changes as well.
Egis will be happy to partner
with these cities to develop
them into 21st Century cities.
We also foresee a huge potential in building office spaces and working on aero-cities in the coming years. It has also been working on AMRUT, DRIP and inland waterways.
There is a possibility that India, with its vast coastline, may take up desalination in a big way to meet its ever growing demand for potable water. Egis has many global projects on desalination and its experience in the field could be tapped to bring in world-class water desalination practices in the country.
Other avenues for possible growth include station development, roads and highways projects, airports and airport management, which is a new area of operation in the country. The company is currently working on eight metro projects in India.
As the country gets ready for BS-VI pollution norms, which will make private vehicles more expensive, many states will look at offering metro services as a rapid transportation alternative.
Additionally, Egis has also worked with Chhatrapati Shivaji Memorial and was associated with the Statue of Unity; these structures can help create tourist attractions and help the government in promoting tourism.
Fruitful time ahead
Vision 2024 is going to help
create a better India. As the prime
minister recently quoted that
infrastructure will play a pivotal
role in the growth of the economy
– we see an exciting time ahead.
This is a good time for India
as it gets catapulted to be one of
the economic superpowers of
the world.
About the author: Sandeep Gulati, Managing Director, Egis India, joined the company in November 2017 as the CFO-India and Asia. Now the managing director of the company, he is set to spearhead the future growth of the Egis Group in India.
