According to a study by PwC, deficiencies in transport infrastructure investment may prove to be a major roadblock even while global transport infrastructure investment is forecasted to reach record breaking levels.
As per a PwC report, lack of investments in transport infrastructure has been acting as a major roadblock to growth in India even though the overall outlook looks bright with a new government installed firmly in the country. According to PwC report, the lack of transport infrastructure has been inhibiting growth majorly even though there are some indications of change with a new government in the country. The new government has been dealing with infrastructure development issues and focus is being placed on this sector.
The outlook for the sector in alignment with various sections of the economy is definitely looking more positive. This optimism is being driven by governmental initiatives for kick starting the construction cycle through growing spending in the public sector according to PwC India Leader- Infrastructure, Manish Agarwal.
According to Agarwal, the momentum can only be sustained through greater private investments and there should be initiatives like reformation of the regulatory environment, rebalancing of risks in PPP structures, dispute resolution easing and greater self sustainability for the investment cycle. Going by emerging global opportunities, companies will have to build greater capabilities and scale up rapidly to compete in the global arena. The government has recently unveiled plans for projects that are worth Rs. 10 trillion for developing shipping and road sectors which will be spent throughout five years.
Union Road, Transport and Highway Minister, Mr. Nitin Gadkari recently emphasized on the increase of express highways in India and has targeted a rise in strength of national highways to 1.5 lakh km by December. Significant investments in road infrastructure are expected to accommodate more cars while investment in public transport infrastructure is a must to relieve congestion in urban areas.