Infrastructure plays a very significant role in economic development. The government has outlined various infrastructure development initiatives in the country, which include smart cities, nationwide connectivity networks of roads, power, gas and water grids. Ascendas has partnered with three State governments to develop IT Parks in Karnataka, Tamil Nadu and Maharashtra. Through our investments in IT and business parks, we are proud to have been able to play a small part in India´ growth. Currently, there are over 390 companies operating in our parks employing over 85,000 people in India. As we continued to invest in and grow our IT parks, we are also witnessing India´ potential to grow as a manufacturing hub. There is demand for good quality industrial space and we have invested in an industrial township in Chennai called OneHub Chennai, to cater to that demand.
- Lee Fu Nyap, CEO, Ascendas India
The year 2015 looks very promising for the entire Indian infrastructure sector. Some major government initiatives like the announcement of 100 smart cities, Make in India campaign, promotion of tourism in India and now the proposed Served from India campaign - are all extremely positive for the sector and are sure to drive long term growth. The government´ willingness to remove the roadblocks in the roads and highways sector, and introducing newer forms of transportation, cleaning of the major rivers and thoughts to promote inland water transport and the concept of ´Make in India´ have boosted the morale of the entire sector.
- Ashish Tandon, MD, Egis in India
Policy hurdles such as delay in awarding projects, environmental clearances, land acquisition and lack of cheaper financing options still continue to be pertinent to the sector. Particularly, the fund crunch issue is a major challenge for the industry.
However, while the infrastructure sector continues to operate in a difficult framework in India, we are optimistic about reviving growth in the infrastructure sector. With the government´ proactive policies and announcements to support the private sector´ involvement in Indian infrastructure, the future looks promising for EPC companies in year 2015. Infrastructure is picking up in India and these moves will certainly pave the way to recovery for the infrastructure sector. Finally, over the years, India has shown that it has a momentum and dynamic of its own and is less impacted by the economies of developed countries than would ordinarily have been imagined.