Why Rapid Growth In Road Infrastructure Poses Significant Challenge To India’s Development

In the last couple of decades, India has been setting new benchmarks in the infrastructure development world. The country is home to some of the world’s biggest, tallest, largest, highest and longest structures. However, there is a still a long way to go, as the country’s logistics cost stands at 14 per cent of the GDP, which is a lot higher as compared to 8-9 per cent of the developed economies.

Currently, one-third of the country’s population is living in cities, and the rapid urbanization is further going to increase this number in the next two-three decades. Thus, the need for sustainable infrastructure for enhanced quality of living will surge as well.

IRB Infrastructure
As per several industry experts, India will emerge as the third-largest construction market in the world by 2025.

At this juncture, it is interesting to note that the construction industry has around 9 per cent share in India’s GDP. It has witnessed a new investment of 16.6 billion in road infrastructure, with almost 51 million people employed in the sector. However, the industry requires more engineering experts, dedicated team and superior execution skills to deal with the current scenario.

With years of experience, bidding and project management skills, road developers like IRB Infrastructure have played a pivotal role in leading the charge with various first-of-its-kind surface projects in the last couple of decades. By strengthening internal competencies and embracing the quality of B.E.S.T. (Bid, Execute, Stabilize, and Transfer), these companies have developed a robust self-sustaining business model to operate in a comprehensive way.

As per several industry experts, India will emerge as the third-largest construction market in the world by 2025. On the other hand, the construction of highways has reached an all-time high average pace of 27 km per day.

India seems to be building a well-developed framework of public-private partnership in the highway sector, and it is planning to expand the national highway network at a faster rate. The implementation of several policies and initiatives like Bharatmala Pariyojna have boosted the economic corridor, enhancing the expressways and highway network in the longer run.

The things seem to be moving in the right direction, but the road infrastructure continues to pose a big challenge to the idea of ‘Developing India’. It will need proper attention and better policies to transform at a rapid pace in the coming years.

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