Infrastructure Deficit Holding India Back, Say Experts
The government is looking at coming up with signature infrastructure projects – Sagarmala project, Bharatmala, Mumbai trans-harbour link, railways in Arunachal Pradesh, Setu Bharatam, Inland waterways, smart cities, to name a few. However, delays owing to fund crunch or land acquisition and other legalities lead to cost overruns and mishaps.
Look forward to
Close to 200 road projects at a cost of Rs 1.5 lakh crore may see completion by mid-2019 or that is what the government is aiming at. Maharashtra has 52 such projects, Uttar Pradesh has 45, Rajasthan has 28 and Gujarat, Madhya Pradesh have 27 and 26, respectively. However, as previous records show, not all of them may be completed by 2019 (or are not scheduled for completion next year) .
Containing the growth
While hundreds of infrastructure projects are ongoing, the dearth or deficiency of infrastructure has caused much harm already. Don Lambert, Senior Finance Specialist, South Asia Regional Department of Asian Development Bank says, “infrastructure is the elephant in the room. India's economy has many strengths: dynamic entrepreneurs, political stability, a young labour force. However, its lack of world-class infrastructure is holding back growth and development.” On one hand, the government has recognised and therefore, these projects have been announced, on the other, lack of a dedicated institution like a bond guarantee fund which would have promoted efficiency, this lack may trigger a ‘mission drift’, in the words of Lambert.
Look up to signature-projects
The Metro rail network across Indian cities have established a pattern in terms of housing and real estate investments. Such infrastructure has guaranteed ample return on investments and the advent of residential and commercial hubs in the vicinity generating growth in demand of areas that were otherwise peripheral and disconnected. Yamuna Expressway, the 165-kilometre of seamless stretch has also helped many affordable and luxury homebuyers to consider the area owing to the growth of the region as a whole in terms of investor interest, government’s initiative and a host of other industries that wished to make use of an opportune time to invest in affordable land for offices or rental purposes. Likewise, GIFT City, solar parks, Bus Rapid Transit System of Ahmedabad, Mumbai’s Eastern Freeway – they have all shaped real estate and lifestyle in and around the area.
While infrastructure is yet at a developing stage, let us hope India matches the expectations, sooner than never.