+
India to spend $500 bn each year on infra: Report
SMART CITIES

India to spend $500 bn each year on infra: Report

India is likely to spend $500 billion, close to Rs. 37 lakh crore, per year on infrastructure projects to accommodate India's rapidly growing population by 2030, according to a report titled 'A Blueprint for Modern Infrastructure Delivery' by construction and consultancy Mace. The report also identifies the core problem with the sector—that up to 80% of the large infrastructure schemes in India are delivered late, exceed the budget, and under-deliver. The report reveals that 414 central projects in India are suffering from cost overruns of 66.71%, which is about $58.42 billion.

As per the statistics of Mace, by Q1 FY21, there were 1,698 central projects under implementation in India, out of which 469 are mega-projects, each costing $134.7 million and above, and 1229 are major projects, each costing between $20.2 million and $134.7 million. Since the arrival of the global pandemic, infrastructure delivery observed stark differences. For example, the pandemic caused a dip of 73% in public transport use in India. Referring to a World Bank Report, experts at Mace opine that the Covid-19 pandemic has caused the most severe global contraction since World War II. There is a stark need to improve delivery, according to reports of the World Bank Group.

Based on the interviews of about 40 senior executives, the report found that the decisions on infrastructure projects are often driven more by political pressure rather than on cost-benefit analyses. Moreover, the infrastructure projects are gravely impacted by the poor predictive abilities of the members of project teams. This pressurises the members to provide fixed point price estimates even before accurate predictions are made.

In developing countries like India, the procurement of materials is based on ‘cheapest price’, or L1, rather than value in order to fit within the unrealistic initially approved budgets. Such procurement basically contributes to the building of a 'false economy' as per the Mace report.

According to the Chairman of Anarock Group, Anuj Puri, labour shortage, revocation of toll collection and construction halt caused by the global pandemic, were the primary barriers to the development of the infrastructure sector in India. Jason Millet, CEO of Mace, reiterated that good infrastructure is vital for the socio-economic development of any country. In India, the majority of the infrastructure projects are not planned properly or delivered, often resulting in cost overruns and under-delivery against expected benefits, even before the pandemic hit. The global pandemic has only worsened the situation further.

According to Millett, this move could cost India an additional $138.46 billion by 2030, and the world an additional $900 billion.

India is likely to spend $500 billion, close to Rs. 37 lakh crore, per year on infrastructure projects to accommodate India's rapidly growing population by 2030, according to a report titled 'A Blueprint for Modern Infrastructure Delivery' by construction and consultancy Mace. The report also identifies the core problem with the sector—that up to 80% of the large infrastructure schemes in India are delivered late, exceed the budget, and under-deliver. The report reveals that 414 central projects in India are suffering from cost overruns of 66.71%, which is about $58.42 billion.As per the statistics of Mace, by Q1 FY21, there were 1,698 central projects under implementation in India, out of which 469 are mega-projects, each costing $134.7 million and above, and 1229 are major projects, each costing between $20.2 million and $134.7 million. Since the arrival of the global pandemic, infrastructure delivery observed stark differences. For example, the pandemic caused a dip of 73% in public transport use in India. Referring to a World Bank Report, experts at Mace opine that the Covid-19 pandemic has caused the most severe global contraction since World War II. There is a stark need to improve delivery, according to reports of the World Bank Group. Based on the interviews of about 40 senior executives, the report found that the decisions on infrastructure projects are often driven more by political pressure rather than on cost-benefit analyses. Moreover, the infrastructure projects are gravely impacted by the poor predictive abilities of the members of project teams. This pressurises the members to provide fixed point price estimates even before accurate predictions are made. In developing countries like India, the procurement of materials is based on ‘cheapest price’, or L1, rather than value in order to fit within the unrealistic initially approved budgets. Such procurement basically contributes to the building of a 'false economy' as per the Mace report. According to the Chairman of Anarock Group, Anuj Puri, labour shortage, revocation of toll collection and construction halt caused by the global pandemic, were the primary barriers to the development of the infrastructure sector in India. Jason Millet, CEO of Mace, reiterated that good infrastructure is vital for the socio-economic development of any country. In India, the majority of the infrastructure projects are not planned properly or delivered, often resulting in cost overruns and under-delivery against expected benefits, even before the pandemic hit. The global pandemic has only worsened the situation further. According to Millett, this move could cost India an additional $138.46 billion by 2030, and the world an additional $900 billion.

Next Story
Infrastructure Urban

Flender Inaugurates Wind Gearbox Test Rig In Chennai

Chennai, 6 March 2026: Flender has inaugurated a 13.5 MW wind turbine gearbox test rig at its Walajabad facility near Chennai, marking the installation of the largest test rig of its kind in India. The facility was inaugurated on 5 March in the presence of Andreas Evertz, CEO, Flender Group; Lars Wiegemann, Vice President – Wind Gears; and Vinod Shetty, CEO, Flender India.The test rig has been developed to support testing and validation of wind turbine gearboxes, strengthening the company’s capabilities in the renewable energy sector. The commissioning was completed within three months thr..

Next Story
Infrastructure Energy

BMW Industries partners with IOCL for PNG supply at Bokaro plant

BMW Industries has entered into a strategic partnership with Indian Oil Corporation (IOCL) for the supply of Piped Natural Gas (PNG), reinforcing its commitment to adopting cleaner and more efficient energy sources for its operations.The agreement was signed at the Eastern Region Pipelines (ERPL) headquarters in Kolkata. The partnership is expected to support the company’s upcoming manufacturing facility in Bokaro by facilitating the use of natural gas as a primary energy source.According to the company, the adoption of PNG will help enhance operational efficiency while also contributing to ..

Next Story
Real Estate

Bombay Realty Secures RERA for Three ICC Tower in South Mumbai

Bombay Realty, the real estate arm of Bombay Dyeing and part of the Wadia Group, has received Real Estate Regulatory Authority (RERA) certification for Three ICC – Wing A, the latest luxury residential tower at Island City Center in Mumbai’s Dadar.The RERA registration marks a key milestone in the development timeline and reinforces the company’s focus on regulatory transparency, timely project delivery, and high construction standards.Following the success of One ICC and Two ICC, the upcoming Three ICC tower represents the next phase of the Island City Center development. The project ai..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement