India?s Infrastructure Boom to Drive Growth, Aid Steel and Cement: Moody?s
28 Aug 2024
2 Min Read
CW Team
India's ongoing infrastructure development is anticipated to continue strengthening the country's economy, with notable benefits projected for related sectors, as indicated by a report from Moody?s Ratings. The report underscores that significant improvements have been made in India?s physical and digital infrastructure over the past decade, largely due to increased spending by both the government and the private sector.
The progress in infrastructure, including advancements in railways, roads, airports, and digital platforms, has been pivotal in enhancing India's global standing. This is reflected in the country's improved ranking in the World Bank's Logistics Performance Index, where India now stands at 38th out of 139 countries, up from 54th out of 160 countries a decade earlier.
Moody?s highlights that the government's dedication to infrastructure is demonstrated by the Rs 11.1 trillion allocated for capital spending in the budget released in early July. The report suggests that ongoing infrastructure development will not only enhance the business environment but also attract private sector investments and generate higher-paying job opportunities.
Nonetheless, the report also identifies challenges in increasing non-agricultural employment, pointing to low participation in higher education and the gender gap in educational attainment as significant obstacles.
Several related sectors are projected to benefit from this infrastructure boost. Industries connected to construction, such as steel and cement production, are expected to experience growth opportunities as railways, highways, ports, and airports continue to develop. Moreover, the anticipated rise in demand for transportation services is likely to benefit sectors including automotive manufacturing, airlines, and ride-hailing services. The consumer goods sector, especially fast-moving consumer goods, has already seen advantages from improvements in both digital and physical infrastructure, and this positive trend is expected to continue.
India's ongoing infrastructure development is anticipated to continue strengthening the country's economy, with notable benefits projected for related sectors, as indicated by a report from Moody?s Ratings. The report underscores that significant improvements have been made in India?s physical and digital infrastructure over the past decade, largely due to increased spending by both the government and the private sector.
The progress in infrastructure, including advancements in railways, roads, airports, and digital platforms, has been pivotal in enhancing India's global standing. This is reflected in the country's improved ranking in the World Bank's Logistics Performance Index, where India now stands at 38th out of 139 countries, up from 54th out of 160 countries a decade earlier.
Moody?s highlights that the government's dedication to infrastructure is demonstrated by the Rs 11.1 trillion allocated for capital spending in the budget released in early July. The report suggests that ongoing infrastructure development will not only enhance the business environment but also attract private sector investments and generate higher-paying job opportunities.
Nonetheless, the report also identifies challenges in increasing non-agricultural employment, pointing to low participation in higher education and the gender gap in educational attainment as significant obstacles.
Several related sectors are projected to benefit from this infrastructure boost. Industries connected to construction, such as steel and cement production, are expected to experience growth opportunities as railways, highways, ports, and airports continue to develop. Moreover, the anticipated rise in demand for transportation services is likely to benefit sectors including automotive manufacturing, airlines, and ride-hailing services. The consumer goods sector, especially fast-moving consumer goods, has already seen advantages from improvements in both digital and physical infrastructure, and this positive trend is expected to continue.
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