Credit agency ICRA estimates that spending on transport infrastructure projects, including roads, ports and airports, will increase in the coming years, benefiting from solid government support, rising capital outlays and a large pipeline of projects.
The government has planned huge capital expenditure under its 'Maritime India Vision 2030' to enhance port capacity and infrastructure over the next decade.
The report said this could lead to supply-demand mismatches in some clusters, resulting in increased competition and pricing pressure for ports.
ICRA expects the Government of India to maintain a strong focus on road sector investment through increased capital outlay.
The Ministry of Road, Transport and Highways (MoRTH) budgetary allocation for the sector has increased more than 8 times over the last decade to Rs 2.7 lakh crore in FY2025, showing a compound annual growth rate of 22 per cent.“After a strong expansion of about 20 per cent in FY2024, India's road construction will grow by 5-8 per cent to 12,500 km-13,000 km in FY2025. This pace of execution will be supported by a healthy pipeline of projects. More focus on government capital outlay and project completion by MoRTH,” said Girishkumar Kadam, senior vice president and group head, corporate ratings, ICRA.
According to the rating agency, investment in airport infrastructure will also remain healthy with committed capital expenditure of around Rs 55,000 crore to Rs 60,000 crore over the next 3-4 years, which will be funded by new greenfield airports, brownfield development and airport development under the airport authority. Will be sent for projects including expansion of the base. Of India.The report said total passenger traffic at airports will grow at a healthy rate of 8-11 per cent to around 407 million-418 million from FY 2024 to FY 2025.
The government has planned huge capital expenditure under its 'Maritime India Vision 2030' to enhance port capacity and infrastructure over the next decade.
The report said this could lead to supply-demand mismatches in some clusters, resulting in increased competition and pricing pressure for ports.
ICRA expects the Government of India to maintain a strong focus on road sector investment through increased capital outlay.
The Ministry of Road, Transport and Highways (MoRTH) budgetary allocation for the sector has increased more than 8 times over the last decade to Rs 2.7 lakh crore in FY2025, showing a compound annual growth rate of 22 per cent.“After a strong expansion of about 20 per cent in FY2024, India's road construction will grow by 5-8 per cent to 12,500 km-13,000 km in FY2025. This pace of execution will be supported by a healthy pipeline of projects. More focus on government capital outlay and project completion by MoRTH,” said Girishkumar Kadam, senior vice president and group head, corporate ratings, ICRA.
According to the rating agency, investment in airport infrastructure will also remain healthy with committed capital expenditure of around Rs 55,000 crore to Rs 60,000 crore over the next 3-4 years, which will be funded by new greenfield airports, brownfield development and airport development under the airport authority. Will be sent for projects including expansion of the base. Of India.The report said total passenger traffic at airports will grow at a healthy rate of 8-11 per cent to around 407 million-418 million from FY 2024 to FY 2025.
