India’s infrastructure promise

This unprecedented push is expected to spawn associated industries, create jobs, and stimulate the economy.

There is unwavering political commitment to developmental projects, transcending mere lip service to policy implementation. The current government has adeptly balanced policy formulation with project execution, recognising the distinct capabilities and energies required for each endeavour, resulting in meaningful societal progress. Access to policymakers is now more inclusive, with conversations driven via frank discussions backed by data. With a high political mandate and overarching objective of nation-building, decision-making has accelerated. This alignment of political-will with developmental goals has propelled India into a new era of purposeful governance.

As India charts its course ahead, stakeholders in the infrastructure sector are poised for a transformative journey encapsulated by the principles of “5-I for India”, with the understanding that there is no Plan-et B.

Inclusiveness: The sine qua non of any robust infrastructure initiative is inclusivity. Beyond the traditional focus on physical infrastructure, the coming years will witness a concerted effort to integrate social infrastructure projects aimed at uplifting marginalised communities and fostering equitable growth. By ensuring that the benefits of development reach all strata of society, India will build a more resilient and cohesive nation.

Intent: Central to the vision for India’s infrastructure is the intent to bring the nation closer together. This goes beyond mere physical connectivity; it encompasses fostering social cohesion and bridging divides within society. By prioritising access and connectivity, India can be an integrated and harmonious nation where communities thrive together.

Internet and IoT innovation: The 21st century belongs to digital connectivity, and India leads from the front. Leveraging the power of the internet and the Internet of Things (IoT), India’s infrastructure landscape will undergo a profound transformation. From digital public infrastructure to efficient payment systems and streamlined healthcare services, technology will be the cornerstone of our progress, driving efficiency, accessibility, and innovation.

Improving quality: Enhancing the quality of living, governance, policy, and supervision should be a priority. By upholding the highest standards across the board, we can build infrastructure that not only meets the needs of today but also anticipates the challenges of tomorrow.

Impetus for growth: The urgency of policy action cannot be overstated. The coming years will demand a concerted effort to catalyse growth and socio-economic development. With a targeted focus on accelerating infrastructure projects, India can unleash its full potential, propelling economic growth, fostering social progress, and positioning itself as a global leader in the 21st century.

Further, India’s trajectory is heavily influenced by its youthful demographics, with approximately 65% of its population below the age of 35. This demographic dividend presents both opportunities and challenges, particularly in meeting the increasing energy needs of a burgeoning population. As India’s GDP per capita continues to rise, driven in part by the growth of its consumption economy, there would be a corresponding surge in demand for energy, food, and healthcare services. Recognising these trends, there has been a notable influx of investments in areas such as renewable energy, agribusiness, and healthcare infrastructure, including stakes in multi-chain hospitals.

As India progresses towards cultivating a more business-friendly environment, redressal mechanisms are being strengthened, providing greater transparency and accountability. The ability to exit and repatriate funds enhances investor confidence, reduces cost of capital and fosters a conducive investment climate. However, a few areas where India has the potential to significantly enhance its competitive advantage is in intellectual property (IP) development and protection and quicker dispute resolution.

At the heart of this evolution lies a concerted effort to connect disparate segments of the population, transcending barriers of distance and accessibility. Crucially, Indian infrastructure development is not solely about erecting concrete structures; it is about enhancing the quality of life for millions. From reliable access to clean water and electricity to robust healthcare and educational facilities, infrastructure initiatives are aimed at uplifting communities and nurturing human capital.

By prioritising investments in social infrastructure alongside physical assets, India seeks to create an environment where every individual can thrive and contribute to the nation’s progress. Moreover, the integration of technology, particularly the pervasive reach of the internet, plays a pivotal role in shaping the modern infrastructure landscape. Through initiatives such as the JAM trinity (Jan Dhan-Aadhaar-Mobile), India has been harnessing the power of digital connectivity to empower its citizens, offering them access to essential services and opportunities.

Rejecting the notion of adopting a Western-centric worldview, India is asserting itself as a force-multiplier, advocating for fair frameworks and inclusive narratives that represent the interests of the Global South. Recent initiatives, such as championing climate action on behalf of developing nations and integrating the African Union into the G20 dialogue, signify India’s commitment to shaping a more equitable global order. These efforts underscore the need for frameworks that go beyond conventional metrics such as the Environmental, Social, and Governance (ESG) framework to encompass the diverse perspectives and priorities of emerging economies.

However, amidst this momentum, challenges persist, particularly in navigating evolving regulatory landscapes and ESG frameworks. India-specific ESG frameworks will emerge, as well as India has to urgently announce its own green and climate taxonomy. As more global funds towards climate adaptation projects happen, without a common language and set of criteria, discrepancies in interpretation and implementation may arise, potentially undermining the efficacy of sustainability initiatives and impeding progress towards shared goals.

Srinath Sridharan and Sakate Khaitan are policy researcher and corporate advisor & senior partner, respectively, at Khaitan Legal Associates. Views expressed are personal.