Indicating that transport infrastructure sector is likely to get the largest chunk of investment in coming time, rating agency ICRA has said transport infrastructure, which remains a key focus area for the new government, may see a major jump in capital allocation to around Rs 25-30 trillion in the next five years. Taking cues from the Bharatiya Janata Party (BJP) manifesto, ICRA expected that transport infrastructure (roads, railways, metro, airport, ports, inland waterway, etc.) to remain the main focus area for the new government.
ICRA’s Vice-President and Group Head, Corporate Ratings, Shubham Jain stated the capital investment in the infrastructure sector has been proposed at Rs 100 trillion over the next five years - which is a huge increase from the current level of capital investment in the sector. Jain further said that such an investment would provide tremendous long-term benefits for the Indian economy. The construction companies are likely to be the major beneficiaries and will witness strong order inflows, estimated between Rs 15-18 trillion on the basis of these infrastructure capex plans.
The new government is likely to maintain the continuity on the major programmes launched during its last tenure, including Bharatmala Pariyojana, Sagarmala and UDAN among others. The last five-year--FY14 to FY19-- had witnessed huge spending by the government on infrastructure segments like roads, railways, metro and rail which is likely to increase further over the next five years.