The government is leading the build-up in view of growing urbanization. The power sector is moving towards equilibrium in demand and supply from a deficit situation. No more new thermal power capacity is required until 2027, other than for projects already under construction; while renewables will continue their strong growth based on competitive tariffs. The report further added that capital expenditure (capex) will remain high for Indian infrastructure players across sectors. The infrastructure sector has high correlation with the overall economic environment. Macroeconomic roadblocks could strain the government’s budget or reduce project returns for the private sector. India’s infrastructure deficit is simply too large to eliminate any time soon but will be matched over a period of time. Infrastructure takes time to build, and perhaps more so in India than for many other countries, S&P Global Ratings credit analyst, Abhishek Dangra claimed.
