Revitalizing Infrastructure Sector to Accelerate Economic Recovery in India

Abstract

Infrastructure has a strong, positive correlation with economic growth, making it a preferred instrument for the government to achieve post-pandemic economic recovery. Other large economies too are similarly investing in infrastructure. Indian projects will thus need to compete with other global projects for financing, investors, technology and developers. It is therefore necessary to improve the attractiveness and marketability of India’s infrastructure projects by reducing risks and improving visibility of projects. With increased competition and changes in the environment, the risks of future cash flows from infrastructure investments have increased manifold. This paper examines the perceived risks in the entire lifecycle of infrastructure projects from infrastructure planning to project planning, bidding, implementation and operations along with best practices in each area. A long-term vision for the infrastructure development will provide visibility to projects for the current National Infrastructure Pipeline. The development of the entire project delivery ecosystem requires initiatives in capacity building in the technical, financial and entrepreneurial resources, and engagement with project affected people. Other desirable outcomes of infrastructure investments, for example, job creation, sustainability and reduction in disparity are also discussed. The paper presents a perspective for revitalizing infrastructure development in India so that its efficacy for post-pandemic economic recovery is enhanced.