INDIA IS UNDERPERFORMING IN INFRASTRUCTURE SPENDING

  • As per the data & facts, India is under performer in terms of spending on Infrastructure Sector in relation to GDP given its level of population demographics within its Peer Group which includes Bangladesh, Cambodia, Indonesia, Pakistan etc.
  • According to some research reports, there is a gap of Investment in Roads ($79 Billion), Telecom ($167 Billion), & Electricity ($163 Billion) segment to be the top performer within its Peer group to reach the US Sustainable Development Goals by 2030.
  • Under the “investment need” scenario (when the country will be able to improve its performance among its GDP group peers), this increases to $4.5 trillion.
  • What are the current Infrastructure Requirements in India?

    • India is the second-largest infrastructure market in Asia after China, GI Hub notes. The report estimates the country will need to invest $3.9 trillion till 2040, under current investment trends that take into account the actual rates at which the country is investing in infrastructure.
    • It seems that the gap between current trends and investment need is not the much in case of India compared with other countries, although the requirement for meeting SDGs is quite tough to achieve.