+
Big infrastructure opportunities with NDA stepping into its second term
OIL & GAS

Big infrastructure opportunities with NDA stepping into its second term

Once again, the mood is Modi! And as the NDA regime steps into its second term, there is optimism about the economy, along with the key sectors of infrastructure, oil and gas and renewable energy, among others.

In a recent report titled Sectoral Development Prospects for NDA 2.0, ICRA lays emphasis on how the re-elected NDA regime can provide momentum to macroeconomic growth. According to the report, the macro indicators of the Indian economy have taken an unfavourable dip in terms of slowdown in GDP growth, moderation in consumption, liquidity tightness and contraction in agricultural and industrial output. This apart, the unemployment rate is at a 45-year high. Therefore, revival of economic growth will be of utmost priority for the new Government. With the focus also being on fiscal consolidation, it remains to be seen how this revival will be crafted. Other factors that may play spoilsport are inflation, worsened trade deficit and crude price volatility, which can disturb the long-term dynamics of India’s current account deficit. Amid these, the Government will have to boost infrastructure investment and private consumption, while maintaining fiscal discipline.

Undoubtedly, the Government’s focus on infrastructure is expected to continue. The past five years have witnessed a massive push towards Bharatmala, Sagarmala, inland waterways, Housing for All, AMRUT, smart cities, metro-rail and railways. And with the continuity in government, ICRA estimates a growth in the total budgetary allocation.

                                               Budgetary Allocation Estimate

Sector

Major capex plans

Expected capital outlay over five years

Railways

DFC, railways capex, bullet train, station modernisation

Rs 10-12 trillion

Roads and highways

60,000 km over the next five years

Rs 7-9 trillion

Urban infra

AMRUT, smart cities, metro/MRTS

Rs ~3 trillion

Ports

Sagarmala

Rs 2-3 trillion

Airport

~100 new airports

Rs ~2 trillion

Inland waterways

Development of national waterways, other related capex

Rs ~1 trillion

Source: ICRA


As Shubham Jain, Group Head & Vice-President - Corporate Ratings, ICRA, says in the recent report, “The next five years will see massive infrastructure build-up in India. The capital investment in the sector has been proposed at Rs 100 trillion over the next five years, a huge increase from the current level. Among key segments, transport infrastructure is expected to see a major jump with an estimated Rs 25-30 trillion of capital outlay over the next five years. Such an investment will provide tremendous long-term benefits for the Indian economy.” He mentions that construction companies are likely to be the major beneficiaries and will witness strong order inflows, estimated at Rs 15-18 trillion on the basis of these infrastructure capex plans.

SHRIYAL SETHUMADHAVAN

Once again, the mood is Modi! And as the NDA regime steps into its second term, there is optimism about the economy, along with the key sectors of infrastructure, oil and gas and renewable energy, among others. In a recent report titled Sectoral Development Prospects for NDA 2.0, ICRA lays emphasis on how the re-elected NDA regime can provide momentum to macroeconomic growth. According to the report, the macro indicators of the Indian economy have taken an unfavourable dip in terms of slowdown in GDP growth, moderation in consumption, liquidity tightness and contraction in agricultural and industrial output. This apart, the unemployment rate is at a 45-year high. Therefore, revival of economic growth will be of utmost priority for the new Government. With the focus also being on fiscal consolidation, it remains to be seen how this revival will be crafted. Other factors that may play spoilsport are inflation, worsened trade deficit and crude price volatility, which can disturb the long-term dynamics of India’s current account deficit. Amid these, the Government will have to boost infrastructure investment and private consumption, while maintaining fiscal discipline. Undoubtedly, the Government’s focus on infrastructure is expected to continue. The past five years have witnessed a massive push towards Bharatmala, Sagarmala, inland waterways, Housing for All, AMRUT, smart cities, metro-rail and railways. And with the continuity in government, ICRA estimates a growth in the total budgetary allocation.                                               Budgetary Allocation Estimate Sector Major capex plans Expected capital outlay over five years Railways DFC, railways capex, bullet train, station modernisation Rs 10-12 trillion Roads and highways 60,000 km over the next five years Rs 7-9 trillion Urban infra AMRUT, smart cities, metro/MRTS Rs ~3 trillion Ports Sagarmala Rs 2-3 trillion Airport ~100 new airports Rs ~2 trillion Inland waterways Development of national waterways, other related capex Rs ~1 trillion Source: ICRA As Shubham Jain, Group Head & Vice-President - Corporate Ratings, ICRA, says in the recent report, “The next five years will see massive infrastructure build-up in India. The capital investment in the sector has been proposed at Rs 100 trillion over the next five years, a huge increase from the current level. Among key segments, transport infrastructure is expected to see a major jump with an estimated Rs 25-30 trillion of capital outlay over the next five years. Such an investment will provide tremendous long-term benefits for the Indian economy.” He mentions that construction companies are likely to be the major beneficiaries and will witness strong order inflows, estimated at Rs 15-18 trillion on the basis of these infrastructure capex plans. SHRIYAL SETHUMADHAVAN

Next Story
Infrastructure Energy

Tata Power, Suzlon Ink Rs 60 Billion Wind Energy Deal in Andhra

Tata Power has signed an agreement with Suzlon Energy to develop, construct, and supply 700 megawatt (MW) wind turbines in Andhra Pradesh. The Rs 60 billion project forms part of a 7 gigawatt (GW) renewable energy plan announced by Tata Power Renewable Energy (TPREL) and the state government in March 2025.This marks the first wind energy project in the state since 2019. The larger 7 GW programme, covering solar, wind, and hybrid projects with or without storage, is expected to attract investments of around Rs 490 billion, making it one of the state’s largest clean energy commitments.The turb..

Next Story
Infrastructure Transport

Odisha Approves Rs 12.6 Billion For 32 New Bridges

Odisha is set for a major infrastructure boost with the approval of 32 new bridges under the Setu Bandhan Yojana for FY 2025–26. The project, valued at Rs 12.6 billion, is aimed at improving road connectivity across ten districts, enhancing mobility and driving local development.The bridges will be constructed in Bolangir, Subarnapur, Nayagarh, Sambalpur, Malkangiri, Bargarh, Koraput, Jagatsinghpur, Cuttack, and Puri. Many of these areas are rural or located in difficult terrains, where improved accessibility will greatly benefit the transportation of goods and public mobility.Setu Bandhan Y..

Next Story
Infrastructure Transport

UP Plans Rs 350 Billion Gorakhpur–Shamli Expressway

Uttar Pradesh is preparing to build its largest expressway, a 700-km six-lane project that will surpass the 570-km Ganga Expressway from Meerut to Prayagraj. Designed as a greenfield project, the Gorakhpur–Shamli Expressway will cut travel time between eastern and western Uttar Pradesh to just six hours, transforming regional connectivity.The expressway will pass through 22 districts and 37 tehsils, bringing faster travel and significant economic benefits, including higher land values for farmers and employment opportunities during and after construction. A drone survey to map the route is e..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?