Union Minister Nitin Gadkari stated on October 19, 2024, in Bhopal that India's road infrastructure is set to surpass that of the United States, emphasizing the critical role of efficient highways, waterways, and railways in reducing logistics costs and boosting economic growth. He quoted John F. Kennedy on the relationship between roads and wealth, underscoring the importance of good road connectivity for economic prosperity. Gadkari pointed out that India's extensive road network spans 63 lakh kilometers and highlighted the need to reduce logistics costs from 14% of GDP to 9% to enhance exports. He criticized consultants for providing poor project reports, suggesting that many prepare documents without conducting site visits. [7ea37435]
India's commitment to infrastructure development remains a cornerstone of its economic growth strategy. The country boasts the world's second-largest road network, which has expanded by 59% over the past decade. In 2022 and 2023 alone, India constructed over 10,000 kilometers of highways, contributing to the National Highways' growth from 97,830 kilometers in 2014-15 to 146,145 kilometers by December 2023. The government has allocated Rs. 2.78 lakh crore (approximately US$ 33.46 billion) for road transport in the fiscal year 2024-25, reflecting its dedication to enhancing transportation infrastructure. The National Highways Authority of India (NHAI) has also invested Rs. 2,07,000 crore (around US$ 24.79 billion) in highway construction during 2023-24, with 202 national highway projects currently underway, valued at Rs. 79,789 crore (about US$ 9.59 billion). These infrastructure investments are designed to boost productivity, attract foreign and domestic investors, connect markets, and foster innovation. [8dbcfc39]
Gadkari also urged municipal bodies to utilize segregated waste for road construction, noting that 80 lakh tonnes of garbage have been repurposed, which has reduced the Gazipur landfill height by seven meters. He raised concerns about road safety, highlighting that 1.78 lakh people die in accidents annually, resulting in a 3% loss to GDP. To combat pollution, he advocated for the development of green highways and emphasized the need for tree planting along roads. [7ea37435]
Amitabh Kant, former CEO of NITI Aayog, has predicted that India's GDP growth could reach 7.5% due to these structural reforms and significant investments in infrastructure. Initiatives such as 'Make in India,' 'Digital India,' and 'Startup India' have bolstered India's global standing and are expected to further stimulate economic growth. The capital expenditure (capex) spending of Rs. 11.1 lakh crore represents 3.4% of GDP in the Budget 2024-25, highlighting the government's commitment to infrastructure and economic reforms. [68ab3a78]
In addition to these ambitious infrastructure projects, India has pledged to achieve net-zero emissions by 2070 and aims to become a $26 trillion economy by 2047. To meet its infrastructure needs, which require an estimated investment of about $4.5 trillion, India has launched several key initiatives, including the National Infrastructure Pipeline (NIP), National Monetisation Pipeline (NMP), PM Gati Shakti plan, and the National Logistics Policy (NLP). These initiatives are designed to attract global pension funds for large-scale, long-term projects while promoting sustainable infrastructure systems that encompass economic, financial, social, and environmental sustainability. [4d62336c]
HDFC Bank has made strides in sustainable financing, raising $300 million through its inaugural sustainable bond issuance, with proceeds earmarked for financing electric vehicles and green loans. The bank's goal is to secure a total of $750 million through Regulation S bonds, with the remaining $450 million allocated for a five-year term. This initiative underscores HDFC Bank's commitment to building a green and social portfolio, focusing on lending towards electric vehicles, Small and Medium Enterprises (SMEs), and affordable housing. [e2fc7037]
Furthermore, Authum Infrastructure and Investment has been active in the market, purchasing INR25 crore in electoral bonds and acquiring two major stressed assets from the Reliance-Anil Ambani Group. Meanwhile, the Hinduja Group, which won the bidding for Reliance Capital, is restructuring its fundraising plan to raise ₹7,500 crore from private credit funds to address governance concerns and facilitate the revival of the company. [bcacc861] [d1938ff7]
These developments reflect India's ongoing efforts to enhance its infrastructure, drive economic growth, and establish a sustainable future. The combination of robust infrastructure projects, sustainable financing initiatives, and strategic investments in key sectors positions India as a significant player on the global economic stage. [4d62336c] [e2fc7037] [bcacc861] [d1938ff7] [8dbcfc39]