India's Infrastructure Boom: Renewables, Roads, and Realty Sectors to See 38% Growth
India's key infrastructure sectors, including renewable energy, roads, and real estate, are expected to grow 38% in the next two years, driven by supportive policy interventions and strong investor interest.
Renewable EnergyInfrastructureRoadsReal EstateIndiaReal Estate NewsJun 18, 2024
For renewables, the key growth driver is demand for a sustainable energy transition, driven by the government's target of increasing auctions, which has created a strong pipeline. India saw auctions of 35 GW in fiscal 2024, the highest-ever in a single fiscal, resulting in a strong pipeline of 75 GW.
This will primarily drive the implementation of 50 GW of capacity over the next two fiscals. When it comes to the road sector, the need for improved physical connectivity, which helps in efficiency gains for the economy, has driven healthy awarding over the past few fiscals, barring the last one.
Strengthened order books of road developers, at 2.5 times revenue, will support 11% growth in highway construction, which is seen at 12,500 km per year over the next two fiscals. As for real estate, net leasing of commercial office space will see demand growth of 8–10% in this fiscal year and the next. Cumulatively, Rs 2 lakh crore of equity capital has been deployed in these sectors over the past two fiscals, driven by strong investor participation.
Frequently Asked Questions
What is driving the growth of India's infrastructure sectors?
Supportive policy interventions and strong investor interest are driving the growth of India's infrastructure sectors.
What is the target for renewable energy capacity in the next two fiscals?
The target is to implement 50 GW of capacity over the next two fiscals.
What is the growth rate of highway construction in the next two fiscals?
Highway construction is expected to grow at 11% in the next two fiscals.
What is the demand growth rate for commercial office space in the next fiscal year and the next?
The demand growth rate for commercial office space is expected to be 8-10% in the next fiscal year and the next.
How much equity capital has been deployed in these sectors over the past two fiscals?
Rs 2 lakh crore of equity capital has been deployed in these sectors over the past two fiscals.
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