The Bumpy Road Industry In India

Pimaplgaon-Dhule Section

Ar Apurva Bose Dutta

The Road Sector– An Attractive Investment

India has the second largest road network in the world and is bound to require huge investments in the coming years. The road network comprises of national and state highways, major district roads, expressways, rural and other roads. According to statistics provided by The Ministry of Road Transport and Highways, roads remain the most important means of transport, accounting for 85% and 65% of passenger and freight traffic, respectively, in India. The Road Sector thus appears to be the most attractive investment in the infrastructural sector.

The Road Sector in India has witnessed a lot of highs and lows in the past five years. Few years back India faced the wrath of poor level of infrastructure. According to the World Economic Forum's Global Competitiveness Index, India's infrastructure was placed at the 91st rank out of 139 nations. The Road Sector which was on a low priority for the Government initially has gradually started demanding everyone's attention'. Thus after experiencing a slowdown from 2008–10, positive signs of revival have been hinted at since 2011. Infact, the total project costs awarded in 2011–12 has been the highest ever for the Indian Road Sector.

In order to escalate the Road Industry, National Highways Authority of India (NHAI) has thus started concentrating and accelerating the road construction and initiating road projects that will give a boost to the GDP. An aim of building 20 km per day has been put forward but is still trying to gain foothold. The booming Indian automobile industry has further given a thrust to the demand of road infrastructure. The government has initiated ambitious targets of building and upgrading roads, and to meet these targets it has moved to financing projects through PPP's for which it further needs to offer viable projects with good margins and favourable policies and ensure that they get implemented. What's more – the arrival of latest road construction equipment in the country has been a positive sign.

Foreign collaborations with United Kingdom Trade and Investment (UKTI) have proved wonders while some firms like UK-based infrastructure firms Balfour Beatty, CA Traffic and Mott MacDonald have expressed their interest to invest in India's booming road and highways sector.

Belgaum-Maharashtra Road

The quarterly review of the Indian Road Sector report by ICRA, India's premier financial information services company, points out that following multiple challenges in the third quarter of the fiscal year 2011-12 of high interest rates, reduced availability of funds, execution slowdown, and increased competitive intensity; the new projects started being awarded during the last quarter. However, the execution over the last year has been hit by land acquisition, clearances, and financial closure. ICRA has ascertained that with the pipeline of road projects to be awarded by NHAI and State governments remaining strong, there will be ample growth opportunities for both developers and contractors in the next 2-3 years. The first half of FY2012 witnessed aggressive bidding of projects due to the entry of new players and due to the slowdown in a few segments of the construction industry like irrigation and power.

NBMCW September 2012

Click Here
To Know More / Contact The Manufacturer
Please fill in your details, we will contact you as soon as possible
Choose Title from the listPlease let us know your name.
Please let us know your Designation.
Invalid Input
Please let us know your email address.
Please let us know your City.
Please let us know your Contact Number.
Please brief your query.
Our other value-added services:

To receive updates through e-mail on Products, New Technologies & Equipment, please select the Product Category(s) you are interested in and click 'Submit'. This will help you save time plus you will get the best price quotations from many manufacturers, which you can then evaluate and negotiate.

Equipment & Machinery
Invalid Input
Building Products
Invalid Input

Construction Industry - Economic Disruptions, Growth Prospects, and the Way Forward

Industry stalwarts from the Construction industry – developers, contractors, consultants, manufacturers, service providers, etc. share their views on the challenges that their businesses are facing due to the nation-wide lockdown Read More ...

Reassessing India’s Infrastructure Needs & Demand

Clearing the clutter in the infrastructure space, clarity in policy by the government, and a more efficient legal system to expedite dispute resolution are the key elements for a vibrant infrastructure sector of Read More ...

Future of Indian Real Estate Market Post-COVID-19 Crisis

India’s real estate market has grown tremendously in the past decade. Robust occupier interest, the rise of organised real estate developers, and the entry of institutional capital have acted as catalysts for the growth Read More ...

Deconstructing a slump

The extended lockdown to stem the Covid-19 pandemic has compounded India’s growth woes. Along with external risks such as weak global demand, supply disruptions, and global financial shocks, the economy now faces factory Read More ...

Tectonic Shift in Realty Business Operations

The COVID-19 pandemic has triggered the biggest ever crisis for the real estate sector. This has dealt a crippling blow to real estate marketing which will in turn change the dynamics of brokerage business in the days to come Read More ...

Best Practices in Delivery of EPC/E&C Projects

The economic growth in India in recent years and the clients’ increasing preference for a single-point responsibility under design-build, for their projects, have led to a surge in opportunities in public as well as private Read More ...

5 Technological Innovations Transforming E&C Sector

Precast construction techniques offer a high degree of modularity of designs and application of manufacturing principles for mass housing projects. The quality, safety, and speed of construction are greatly enhanced with precast Read More ...

Infra Development: The Way Forward

Although the Indian economy has been facing macro-economic ups and down due to global economic gloom, it has managed to remain stable, recording moderate growth rate consistently. Braving all the problems beyond its control, it has improved Read More ...

“Nal Se Jal” - SPML Infra Playing Key Role in Developing Water Infrastructure in India

SPML Infra Limited, India’s leading water management company will play a key role in the development of sustainable water infrastructure to realize the vision of “Nal Se Jal”. This ambitious scheme announced by the Finance Minister during Read More ...

Indian Aviation on a Growth Path

The Aviation Industry in India has emerged as one of the fastest growing industries in the country, especially so during the last three years. Introduction of low-cost carriers, FDI in domestic airlines, advanced information technologies Read More ...

Redefining Urbanity with international transport system

Creative Group presents a new vision for Chandni Chowk (a very congested area in Old Delhi) with re-planned interconnectivity, intermodality, and green spaces, that release the current stress above the ground and create opportunities to restore Read More ...

Rapid Transit System in India Making inroads

To quote Mark Walport, “Industrialisation, Mass Transit, and the Internet are technological revolutions that have reshaped lives, nations, and the planet.” The Indian economy is poised to grow at over 7% in the coming years, placing it Read More ...

Attracting Private Investments to Boost Highway Growth in India

Ever since India set out on a path of economic liberalization in 1991, the policymakers for almost three decades remained focused on developing infrastructure to commensurate with the economic growth of the nation. But the task was humongous Read More ...

Transport Infrastructure in Focus

Transport Infrastructure to continue as a key focus area for new Government with massive capital outlay of up to ₹30 trillion expected over next five years. Construction companies are likely to be the major beneficiaries and will witness Read More ...

Real Estate Market Outlook 2019

India continues to retain its position as the world's fastest growing major economy on the back of improved investor confidence and better policy reforms. The IMF's database also suggested that India's contribution to world growth Read More ...

Infra Construction - Positives Outweigh Negatives

For a large part of the current up-cycle which started in CY2016, road work has largely been the biggest demand driver, followed by railways/metro.Notwithstanding the general slowdown in public/private infrastructure work Read More ...
NBM&CW

New Building Material & Construction World

New Building Material & Construction World
MGS Architecture

Modern Green Structures & Architecture

Modern Green Structures & Architecture
L&ST

Lifting & Specialized Transport

Lifting & Specialized Transport
II&TW

Indian Infrastructure & Tenders Week

Indian Infrastructure & Tenders Week