CRISIL’s big Indian infrastructure prediction: Spending to double in next 7 years compared to last 7

CRISIL's Infrastructure Yearbook 2023 forecasts a significant surge in India's infrastructure spending over the next seven years. The investment is projected to double by 2030, reaching an estimated Rs 142.9 lakh crore from Rs 66.7 lakh crore during 2017-2023. While government funding dominates, the private sector is pivoting towards the energy and transportation domains

Rahul Prithiani, Senior Director at CRISIL Market Intelligence, said, "...this will be led by some of the core infrastructure sectors such as roads, railways, and urban infrastructure, which will require significant funding. Along with that, key areas within the energy sector, especially clean energy, will see a substantial build-out, led by renewables and smart meters."

He expects companies in the infrastructure space, including EPC firms, asset owners, and financiers, to witness substantial opportunities, provided they manage their balance sheets and operational performance effectively.

He also highlighted the renewable energy sector, saying, "Wind and solar will clearly lead the charge in terms of clean energy investments, with approximately 150 gigawatts of additions expected in independent power producer (IPP) projects. Green hydrogen, which presents another opportunity, is estimated to add 30 gigawatts over the next five to seven years. The scale of investment is substantial."

Jagannarayan Padmanabhan, another senior director at CRISIL Market Intelligence, shed light on the transportation segment saying infusion in the space could increase ten-fold to Rs 6.3 lakh crore by 2030.