Road to 2047: India’s Infrastructure Challenge

The development of road and highway networks

India’s aspiration to become a high-income, developed economy by 2047—the 100th anniversary of its Independence—has generated a lot of interest in terms of the potential and the challenges. The discourse around this vision reveals that, although there is optimism, significant challenges remain to be addressed. A key driver of this economic transformation will be the country’s infrastructure—wherein roadways and highway networks are critical.

Historically, the development of road and highway networks has been closely linked to economic progress. For instance, after World War II, U.S. President Eisenhower initiated the construction of the interstate highway system to connect major metropolitan areas across the country. This system enabled better connectivity and faster movement of goods and people, facilitating economic growth and reducing the cost of trade. Countries such as Japan, Germany, and South Korea have seen similar correlations between robust transport infrastructure and economic expansion. More recently, China has made tremendous strides in both transport infrastructure and economic growth.

In the past two decades, India has also been expanding its highway network. Key cities like Delhi and Mumbai, Bengaluru and Chennai, amongst others, are now connected by expressways. Very recently, the road construction sector set an impressive record when 112.5-kilometers of roads were laid in just 100 hours.

However, despite the rapid progress, challenges related to quality and safety remain pervasive, posing a serious obstacle to India’s 2047 vision. Reports of deteriorating and potholed roads, collapsing bridges, and leaks in tunnels have become frequent. Also concerning is the fact that Indian roads remain unsafe, with over 500,000 accidents recorded annually. These issues must be addressed if India is to achieve its infrastructure goals.

While overloaded (and therefore unsafe) vehicles, poor road conditions, and weak enforcement of laws add to the hazards on roads, it is also important to examine challenges at the project implementation stage. Despite having the ingredients for building world-class infrastructure—advanced planning, modern equipment, and cutting-edge technologies such as AI-based quality monitoring systems—India still struggles with under-utilization of these innovations. Reasons include shortage of skilled professionals, including engineers and project managers.

Skilling, Technology, and Quality in Construction

India needs critical thinking skills to foster homegrown innovation, for which, the government must invest in equipping the workforce with the necessary skills. To this end, India’s education system should undergo substantial reform. To improve civil engineering education in India, the curriculum must align with modern industry demands, emphasizing practical learning through field visits, internships, and advanced labs. Moreover, industry-academia collaboration can effectively bridge the gap between theoretical and practical knowledge. Training the faculty on emerging technologies, facilitating research on smart construction practices, and bringing educators from developed nations to train Indian teachers, can instill problem-solving techniques essential for real progress. The private sector should also be incentivized to adopt more technologies, undertake research, and innovate.

Another concerning trend is the decline in enrollment in civil engineering courses in India. Given the rapid urbanization and increasing need for infrastructure upgrades, this could exacerbate the already growing shortage of civil engineers. To address this, we must establish incentive structures for students, and offer attractive salary packages to attract talent into the civil construction sector.

In addition to the skilled workforce shortage, there is also a significant labor shortage in both the infrastructure and real estate sectors. This shortage is driving up construction costs and causing delays in project delivery. According to reports, labor costs in the private sector have increased by 25% year-on-year, and by 150% since FY2019. These rising costs underscore the need for mechanization in the construction sector and urgent skilling of the workforce to meet the demands of large-scale infrastructure projects.

Furthermore, all stakeholders must take responsibility for ensuring quality construction. Bidding policies that compel contractors to submit unsustainably low bids often contribute to compromised project outcomes. While moving away from the L1 bidding system may not be feasible, project owners and authorities should clearly specify (in the bidding documents) all the essential requirements to execute projects, such as advanced technologies, modern equipment, sustainable building materials, and experienced project managers, and ensure that the L1 contractors meet these requirements. This could include revising bidding practices to ensure realistic pricing, due diligence (from design to completion), along with rigorous quality checks, strong project management, and mandating third-party inspections at every stage to ensure accountability by all the stakeholders.

Closing the Gap with Existing Policies

The government’s Gati Shakti policy provides a framework for addressing some of these issues. By streamlining infrastructure projects and improving inter-departmental coordination, the policy can foster greater transparency, reduce delays, and promote best practices. Such coordination can ensure that projects are executed efficiently and with higher quality standards. Additionally, scaling up training programs will be crucial to ensure that the workforce can meet the needs of modern infrastructure construction and maintenance.

The opportunities in India’s construction sector over the coming years far exceed the country’s current capacity to build. Projects spanning railways, highways, irrigation, power, tunneling, and mining are set to reshape India’s economic landscape. To meet its ambitious 2047 goal of becoming a high-income economy, India will need to invest over USD 2.5 trillion in infrastructure development by 2032. Achieving this goal will also require a pool of experienced contractors to manage such massive investments - a daunting challenge, no doubt. The government should establish clear guidelines and actively encourage Indian contractors to collaborate with experienced international contractors when bidding for projects. Such partnerships will enhance project execution and management, ensuring higher quality and efficiency in infrastructure development.

India must prioritize strategic infrastructure investments through collaborative public-private partnerships. One example is the National Infrastructure Pipeline (NIP), which integrates funding and execution across key sectors such as energy, transportation, logistics, and water. Expanding such models will foster broad-based and inclusive growth.

In addition to transportation and infrastructure, accelerating India’s energy transition will be critical to meeting the country’s 2030 target of 500 GW of renewable energy capacity. This requires annual investments exceeding USD 150 billion, supported by robust policy frameworks to attract both global and domestic funding. Strengthening the green energy ecosystem — spanning solar, wind, energy storage, hydrogen technologies, and electric vehicle (EV) infrastructure—will not only bring sustainability, but also generate millions of jobs. Expanding the digital infrastructure will also help position India as a global leader in the digital economy, driving sustained economic growth.

Another pressing issue that deserves greater attention is the need to regularly upgrade and maintain the existing infrastructure. Neglecting the upkeep of existing assets while building new ones is not a viable solution. A holistic approach is essential—one that emphasizes efficient resource utilization and allocation to balance maintenance with development effectively.

bauma CONEXPO INDIA: Opening Doors to Quality Construction

India’s construction industry must build an India that not only meets the aspirations of its people, but which also stands the test of time. This is possible provided there is quality construction led by a skilled workforce, and accountability at every phase of development.

Taking steps to develop quality infrastructure requires coordination among industry stakeholders. bauma CONEXPO INDIA 2024 presents an excellent opportunity for government and industry stakeholders to come together. Previous editions have shown the trade event serving as a platform for public and private representatives across domains such roads, bridges, tunnels, power, urban development, real estate, and demolition, and discussing the future of the construction sector in India.

This year too, a series of conferences, one-on-one meetings, live demonstrations of machines, a Tech Zone, and a Finance Zone, are making the tradeshow an ideal space to foster collaboration and share industry insights. Latest innovations in equipment are highlighting how these advancements can promote collaborative growth and sustainable infrastructure development across India. As the country moves closer to its 2047 goal, opportunities presented by trade events like bauma India will be vital for fostering partnerships to meet infrastructure challenges head-on.

In this issue of NBM&CW, we explore the intersection of technology, quality, and training in building the infrastructure necessary to support India’s vision for 2047. Interviews with over 100 equipment manufacturers reveal their technological readiness to build world-class infrastructure with cutting-edge machines and sustainable construction practices.

This issue will serve as a valuable resource for equipment buyers by offering insights into the technological capabilities of OEMs and their on-ground support. Team NBM&CW looks forward to meeting our readers during this four-day mega event at our stall in Hall 15 Stall K 17 for a discussion on the infrastructure construction industry - over a Hot Cup of Coffee.

S.A.Faridi
Managing Editor

NBM&CW - DECEMBER 2024
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