CRISIL: India Allocates Rs 143 Lakh Crore for Infrastructure, With Rs 36.6 Lakh Crore Dedicated to Green Projects by 2030

Representational image. Credit: Canva

In a recent announcement at the CRISIL flagship India Infrastructure Conclave 2023 in New Delhi, it has been revealed that India is set to make substantial investments in infrastructure over the next seven fiscal years, totaling nearly Rs 143 lakh crore. This is more than double the Rs 67 lakh crore spent during the previous seven fiscal years starting in 2017, according to CRISIL, a leading global analytical company.


What’s particularly noteworthy is that around Rs 36.6 lakh crore of this investment is earmarked for green initiatives, marking a significant fivefold increase compared to the previous fiscal years spanning from 2017 to 2023.


Amish Mehta, the Managing Director & CEO of CRISIL Ltd, shared his insights, highlighting the expectation of India’s GDP growing at an average rate of 6.7% until fiscal 2031, positioning it as the fastest-growing large economy. This economic growth is anticipated to result in a rise in per capita income from approximately $2,500 to about $4,500 by fiscal 2031, effectively transforming India into a middle-income country. This economic transformation will be driven by an extensive, all-encompassing infrastructure development plan with a strong emphasis on sustainability.

Also Read  COP28 Spotlights the Middle East's Pivotal Role in Global Decarbonization and the Imperative for Diversified Energy Strategies

The CRISIL Infrastructure Yearbook 2023 was also launched during the event, featuring a novel national index called the CRISIL InfraInvex. This index assesses the “investment attractiveness” of selected infrastructure sectors since 2017, and this year it has incorporated environmental sustainability to reflect the increasing importance of eco-friendly considerations in investment decisions.

The development of infrastructure in the upcoming phase will witness an increase in the size and number of mega-scale projects. It is crucial for various stakeholders to facilitate appropriate and consistent policy and regulatory interventions and ensure timely execution to attract investments across infrastructure sectors.

The yearbook provides an in-depth analysis of infrastructure funding requirements, solutions to address funding-related challenges, and avenues for green financing. Sectors like roads and power are expected to remain prominent contributors, while emerging sectors like electric vehicles (EVs), solar energy, wind energy, and hydrogen are predicted to gain momentum. The share of EVs in India’s automobile sales is projected to reach approximately 30% by 2030, with two-wheeler EV sales leading the way until 2028. The share of renewable energy capacity is estimated to grow fourfold between fiscal years 2023 and 2030, with solar energy being a significant contributor. The hydrogen sector is also poised for substantial investments, primarily driven by government incentives.

Also Read  Southeast Asian Nations Need Stronger Policy Support To Boost Solar And Wind Power - Report

In conclusion, India’s commitment to massive infrastructure development, particularly in the green and sustainable sectors, signifies a dynamic economic future and opportunities for growth and innovation. Balancing growth with environmental considerations will be pivotal as the nation embarks on this transformative journey.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.