NEW DELHI: Despite the West Asia crisis having ripple effects on all sectors of the economy, infrastructure investments are likely to see a 45-50 per cent growth over the next two financial years through March 2028, compared to the preceding two years, Crisil said.
This would take the quantum of investments by FY28 to ₹23-24 trillion, the ratings agency said in an infrastructure sector outlook report on Tuesday.
Continued government policy support and strong balance sheets will keep the infrastructure players well-positioned to sustain the growth trajectory seen in recent years, it said.
However, several risk factors persist for infra sectors. In renewable energy, this includes delay in timely closure of Power Purchase Agreements (PPAs) and lag in ramping up transmission evacuation infrastructure against renewable capacity.
In roads, continued awarding slowdown could impact execution and lower-than-expected monetisation proceeds may constrain financing.
Crisil said supply outpacing demand in residential real estate, flagging AI adoption and geopolitical uncertainty impacting leasing growth for commercial properties are risk factors.
The agency said that gradual revival is expected in project awarding in the road sector — after a slowdown in the last few years — on account of healthy budgetary allocation, as well as efforts taken by the government to debottleneck the approval processes.
With the national monetisation pipeline setting a hefty target for highways, Crisil said it is expected to gain further momentum, with ₹70,000-80,000 crore worth of assets estimated to be monetised by the National Highways Authority of India to fund the growth.
Among new-age sectors, the growth of data centres is exposed to pricing risks due to a rise in competitive intensity.
“Smart meters may face execution delays due to right-of-way issues and lower-than-anticipated consumer acceptance. Battery manufacturing and green hydrogen sectors remain exposed to competition from imports or alternative solutions,” it said.
Around 15-20 per cent of investments in these sectors will be funded through equity. New-age sectors with mature business models will benefit from easier access to capital, while nascent ones may require higher upfront equity investments, the report said.
Source: Business Standard
