The infrastructure sector is a key driver of any economy as it generates opportunities worth 10 times the invested amount and is an important contributor to growth and capacity creation. India is no exception. Infrastructure has always been crucial for the nation’s development and, particularly in the post-reforms era, the government has been relentlessly pursuing it with vigour and on priority. The infrastructure sector has also been one of the key areas attracting foreign FDI in roads, construction and development of housing and townships, power sector and even logistics sector. According to information from the Department of Industrial Policy and Promotion (DIPP), FDI on projects related to construction development amounted to $24.91 billion between April 2000 and December 2018. The government, too, is investing heavily in highways and urban transport. India requires investment worth `50 trillion ($778 billion) in infrastructure by 2022 for sustainable development. The good news is that the country is witnessing significant interest from international investors in this space. With roads covering 5.5 million km, India has one of the largest road networks in the world. And, we still need more, as these roads are responsible for transporting 64.5 per cent of all goods and 90 per cent of total passenger traffic. The construction of highways touched 9,829 km in December 2018 and, at this time, the Ministry of Road Transport and Highways (MoRTH) touched a record 31.87 km per day average of National Highway construction. In FY 2018-19, the Government of India was aiming to construct 10,000 km of National Highways. Under the Prime Minister Gram Sadak Yojna (PMGSY), 47,447 km were constructed in 2017-18. In the Union Budget 2019-20, the government allocated Rs.825 billion for the development of National Highways. The length of highways constructed from April 2018 to December 2018 was 6,715 km at a rate of 24.42 km per day, an encouraging trend. In the infrastructure segment, the EPC sector witnessed a decent order inflow in the past four quarters, driven mainly by government capital expenditure. On the other hand, private capex has declined for seven years in succession, from FY12 to FY18. However, given the favourable macro situation, the implementation rate of infra projects improved considerably in FY 2018-19, also driven by the general elections in Q1 of FY 2019-20. Urban infrastructure development, the key focus of the government, has played a key role and this is likely to continue in future with the implementation of smart cities, water infrastructure and Housing for All under the Pradhan Mantri Awas Yojana (PMAY). In the roads segment, the EPC mode, which contributed 65-70 per cent of the total cost of projects awarded by NHAI in FY14-16, has taken a backseat. Single-segment road players have seen a relatively lower inflow of new orders. This was on the back of a slowdown in order award activity by NHAI, which awarded only 550 km of projects in FY18-19 compared to 7,400 km the previous year, eventually leading to muted inflows. Moreover, over the past two fiscals, the hybrid annuity model (HAM) has taken the sweet spot, with EPC projects forming just 30-35 per cent of the cost of projects awarded. We expect that the comeback of the EPC mode in FY2019-20 will be a game changer for the sector. The Bharatmala Pariyojna is another key initiative of the government to support development and construction of good quality roads. Under this programme, the Ministry of Road Transport and Highways has identified stretches for development of about 9,000 km of economic corridors, about 6,000 km of inter-corridor and feeder roads, about 5,000 km of national corridor efficiency improvements, about 2,000 km of border and international connectivity roads, about 2,000 km of coastal and port connectivity roads and about 800 km of expressways. The government is also rapidly moving towards technology-driven platforms for increased transparency and quick progress on important bottlenecks. This has led to a faster and more efficient process of land acquisition.