INFRASTRUCTURE DEVELOPMENT SHAPING FUTURE
India’s infrastructure sector has been growing at a healthy rate over the past few years. The sector continues to benefit from government’s initiatives to develop sustainable infrastructure in the country. The strong emphasis on this sector is crucial to India’s growth trajectory and helps to build world-class infrastructure as per the plan. The National Infrastructure Pipeline (NIP), introduced in 2019, emphasizes building sustainable infrastructure including energy, roads, railways, and urban development projects. NIP is complemented by the PM Gati Shakti Master Plan, which is dedicated to improving India’s logistics network. In the Budget 2023-24, Indian government emphasized the need for increased spending in the infrastructure sector and nearly trebled its infrastructure spending to 3.3% of GDP as compared to its spending in 2019-20. The Budget also allocated Rs 75,000 crores for 100 special projects deemed critical to improving the multimodal logistics infrastructure under different schemes.
In 2024, India is gearing up for its general election, and there's anticipation that development initiatives will be fast-tracked to meet targets before the election announcement. This is likely to result in a surge of project awards and implementations. It's crucial to highlight that the extensive budget allocations for these schemes are long-term in nature, ensuring a favourable outlook for construction companies not only in 2024 but in the years that follow.
NIP and the growth opportunities
The National Infrastructure Pipeline for the period of 2019-25 is aimed at delivering top-class infrastructure. Currently, under the NIP, there are 9,509 infrastructure development projects at various stages of implementation covering sectors such as energy, roads, railways, and urban development worth Rs 108 lakh crores. I am optimistic that the forthcoming union budget will prioritize and allocate a significantly larger budget for infrastructure development.
A global research has forecasted that the market size of India's infrastructure sector will reach Rs 15.45 lakh crore in 2023 and is poised to expand further, reaching Rs 24.42 lakh crore by 2028. This remarkable growth reflects a cumulative growth rate of 9.57%, nearly 40% higher than the current growth pattern. The Indian government is trying to create an intense push through policies to ensure world-class infrastructure in India, making it India’s new identity. The NIP is pivotal in propelling social and economic progress and setting the stage for India’s future development possibilities. NIP and such other schemes will be crucial to achieve the vision of 'Viksit Bharat 2047', aiming for a US$ 40 trillion GDP and transitioning from a developing to a developed economy.
FDI prospects in infrastructure
The infrastructure sector is a key driver of the Indian economy and the government is creating an intense push through policies to attract external financing to ensure world-class infrastructure. India remains a favoured destination for global investors, as per the United Nations Conference on Trade and Development (UNCTAD) World Investment Report. The 2023 report disclosed that India secured the third-highest foreign direct investment (FDI) for new greenfield projects in 2022.
The total FDI inflows received in FY 2023, which includes equity inflows, reinvested earnings, and other capital sources, amounted to Rs 5.90 lakh crore. The infrastructure sector has received significant inflow of over Rs 14,000 crore in FY23. In order to maintain India's appeal as an investor-friendly destination, the government regularly assesses and adjusts the FDI policy through continuous reviews, incorporating changes after extensive consultations with stakeholders.
In 2024, FDI is expected to gain traction due to robust GDP growth, improved industrial output, and appealing production linked incentive (PLI) schemes. This attractiveness is anticipated to draw increased interest from foreign players, amid geopolitical challenges and a globally tighter interest rate regime. Notwithstanding global challenges, India retains its status as the preferred investment destination due to its robust economic fundamentals, a large consumer market, ongoing policy reforms, and a commitment to fostering a business-friendly environment. The country's resilience and growth potential positions it as an attractive prospect for investors seeking long-term growth and stability.
Technology transformation
Our lives have been revolutionised by the technology in many ways. Similarly, new-age technologies are making infrastructure projects innovative and advance to improve efficiency, reduce costs, and enhance sustainability.
Innovations such as 3D printing, building information modelling (BIM), prefabrication, advanced materials, and automation will continue to play a more prominent role in project execution. The adoption of digital technologies, internet of things (IoT), and artificial intelligence is anticipated to streamline processes, improve project management, and drive overall advancements in infrastructure industry. The robotics and automated systems will improve construction efficiency and safety, such as automated bricklaying machines and drones for site inspections.
Virtual and augmented reality will create digital simulations and enhance visualization of project design and construction process. Infrastructure development companies are using virtual reality (VR) and augmented reality (AR) technologies to optimize processes, minimize errors, and improve communication among project stakeholders. Nanotechnology is emerging as the new material for construction and it uses materials and systems at the nanoscale (1-100 nanometers) to enhance construction properties such strength, durability, and energy efficiency. As these technological trends gain momentum, the infrastructure sectors are poised for further modernization and optimization in the year ahead.
Water infrastructure
Water infrastructure plays a crucial role in India's economic development by providing essential support to various sectors. Robust and sustainable water infrastructure contributes to increased agricultural productivity, ensuring food security and supporting the livelihoods of millions of people in the agriculture sector. In urban areas, efficient water supply and sanitation systems are crucial for public health, promoting a healthier workforce and reducing disease burdens. Reliable and adequate water supply is vital for industrial production for sustained industrial growth. Adequate water supply facilitates energy production contributing to the country's energy security.
With targeted approach, the Government of India has made significant investments in establishing modern water supply infrastructure. This initiative not only generates employment opportunities but also stimulates economic progress. The flagship Jal Jeevan Mission alone has a fund allocation of Rs 6.47 lakh crore dedicated to the development of urban and rural water supply infrastructure. Several other water infrastructure development initiatives with significant investments are also in progress are currently underway. These endeavors are poised to contribute considerably to the nation's targeted economic growth.
Innovative pump systems
The water industry in India is experiencing multi-dimensional growth in response to the challenges it confronts. The rapid urbanization, coupled with industrial growth, has accelerated water demand. This issue is further aggravated by significant water loss due to aging infrastructure; hence, optimization of infrastructure becomes vital to minimize energy consumption and operational costs in meeting water requirements with sustainability. Amongst the water supply infrastructure, pumping station plays a crucial role in ensuring continuous and dependable water supply to diverse destinations.
Pump systems account for 20% of the world's electrical energy demand and between 25%-50% of the electrical energy usage in certain applications. Pumps are the single-largest user of electricity in water industry, and needed proper energy efficiency optimization. After years of research and careful consideration, Pump Academy Private Limited has unveiled an innovative solution called iPUMPNET. With dedicated emphasis on fostering innovation and leveraging the power of digital technologies, this carefully crafted solution is poised to elevate energy efficiency of pumping systems while reducing water losses significantly. iPUMPNET, equipped with IoT capabilities, transforms the management of pumping stations by streamlining operations, converting traditional pumps into intelligent and responsive units. The secure and centralized platform facilitates real-time monitoring of pumping stations through an intuitive dashboard, accessible via the internet and mobile applications.
The water industry in India has acknowledged the potential of digitalization and data-driven approaches as potent tools to improve
water management. When it comes to optimization of pumping stations, iPUMPNET stands out as a revolutionary digital solution. Harnessing cutting-edge technology, it elevates the efficiency, reliability, and overall performance of pumping systems. Through its innovative approach and advanced features, iPUMPNET is poised to transform the way water utilities and industries manage and optimize their pumping operations.
The advantages of incorporating iPUMPNET in pumping stations are manifold:
• Improving operational efficiency by 35 percent
• Reducing energy consumption by 25 percent
• Lowering the life cycle cost (LCC) of pumping stations by 45 percent
• Extending the lifespan of pumping systems by 50 percent
Other notable benefits include the virtually eliminating the unscheduled breakdowns and maintenance. It is estimated that the implementation of iPUMPNET across all water pumping stations in India could save nearly 5 GW of energy, in value terms; this could translate to per year saving of Rs 250 billion by saved energy. This would also result a substantial reduction of carbon footprint, approximately 3.06 million tonnes, contributing to environmental sustainability. Furthermore, the return on investment for optimization is typically realized within a year.
Chairman, Pump Academy
