Infrastructure holds key to India’s economic growth and reforms in 2023. Here’s why

The government’s focus on building infrastructure of the future has been evident given the slew of initiatives launched recently. The $1.3 trillion national master plan for infrastructure, Gati Shakti, has been a forerunner to bring about systemic and effective reforms in the sector, and has already shown a significant headway. In fact, 102 critical projects under the Gati Shakti masterplan worth $7.67 billion are to be completed by 2024, making 2023 a critical year for effective execution and celerity of completion.

Infrastructure support to nation’s manufacturers also remains one of the top agendas as it will significantly transform goods and exports movement making freight delivery effective and economical. The government has also suggested an investment of $750 billion to strengthen railway infrastructure, and envisioned the Maritime India Vision 2030 which estimates massive investments in world-class infrastructure development at Indian ports.

Global investment and partnerships in infrastructure, such as the India-Japan forum for development in the North East are also indicative of more investments. These initiatives come at a momentous juncture as the country aims for self-reliance in future-ready and sustainable critical infrastructure.

Although 2022 marked a shift in better envisioning of infrastructure goals and paving the path to developing top-notch, global-level network of roadways, railways, airports and ports, we need to focus on examining the challenges we have faced and how best can we optimise the investments in these projects.

Robust infrastructure projects warrant strong structural integrity, which not just effectively increases longevity but also prevents economic ramifications of a structural failure. Quality concerns, especially owing to corrosion, have cost the country significantly. We lose about 4 to 5 percent of our GDP every year due to corrosion related costs.

But, are we doing enough to address these issues? Investing in galvanized steel, for instance, can not just protect against corrosion but also aid longevity, durability, lower the costs and even enhance the aesthetics. Even then, out of the approximately 100 million tonnes of steel produced in India every year, less than 10 percent is coated with Zinc.

This gains all the more relevance with the needs of urban infrastructure growing at unprecedented rates. India, it is estimated, needs to invest $840 billion over the next 15 years into urban infrastructure to meet the needs of its fast-growing population. This investment will only be rational as well as sustainable, if we additionally focus on long-term maintenance and strength of our buildings, bridges, ports and airports.

Add to this, India’s focus on sustainable infrastructure, aligned with its transition to sustainable energy and net zero emissions, which makes investing in environment friendly structures such as steel structures coated with zinc, all the more important. It will also gain prominence as the government’s ambitious Smart City Mission, with a vision to promote 100 inclusive and sustainable cities to offer long-term quality living to its citizens, slowly comes to fruition.

India, even today, significantly lags behind major developed countries in the uptake of galvanized steel. This also means that going forward, we would need to reiterate the relevance of standardising coating standards across industries.

Infrastructure is a sector that will continue to attract strong capital inflows, especially with structural reforms, digitisation of logistics and infrastructure-focused wealth funds to aid investment. These Investments have the potential to create a true multiplier effect to take the economy on a higher growth trajectory.

However, what will truly make us future-ready is investing in safeguarding our infrastructural integrity and taking up a notch our ability to develop reliant and stronger foundations.

While progressive regulatory and policy reforms remain critical, a razor sharp focus on maintaining world-class quality and structural integrity will be the key to resilient and sustainable infrastructure development and, therefore boosting a sturdy growth in-line with India’s dream of becoming a $5 trillion as well as and a self-reliant strong economy.