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India Transportation Infrastructure Construction Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 120 Pages
  • March 2022
  • Region: India
  • Mordor Intelligence
  • ID: 5572924
UP TO OFF until Jun 30th 2023
The India Transportation Infrastructure Constrruction Market is expected to grow from USD 32.02 Bn in 2021 to USD 40 Bn in 2027 at a CAGR of 4%. This growth can be attributed to the increasing population and consequently the increasing need for road, railway and air transports.

Due to COVID lockdowns and labour unavailability the transport infrastructure construction market has taken a hit. Many construction projects were stopped to ensure the safety of the workers. The supply chains, plants, equipment and manpower were hugely impacted. Now the sector is recovering and focusing towards developments.

The transport infrastructure sector is of utmost importance in driving Indian economy. Therefore, it enjoys a great deal of focus by government in the form of initiatives and policies that aim for a massive development of the country. In Union budget 2021, the Indian Government allocated USD 32.02 Billion to enhance transport infrastructure.

The Rail Land Development Authority (RLDA) is going to invite Request for Quote (RFQ) and Request for Proposal (RFP) for the developers to enter in the bidding process for the redevelopment of the New Delhi Railway Station. The authority conducted a stakeholder engagement meeting, where nine qualified global and national leading companies participated. The project has attaracted interest of national and international stakeholders.

An inland waterway transport project is going to be developed on Mizoram's Khawthlangtuipui-Tuichwng rivers. It is will be stretched across 23 km and will cater to the needs of southern districts in Mizoram. The central government has sanctioned USD 0.8 Mn out of the total USD 2.9 Mn . More inland waterway projects will be seen coming in Mizoram.

Key Market Trends

Increasing Need for Highway Infrastructure

An efficient transportation network is a must for economic growth of any country. A good transportation network reduces the freight cost and easy accessibility of resources.

Highways are a major part of India's transportation network. It is inadequate as per the country's needs. It is importatant to have a high desity of highway network compared to the population of the country. India lags in this regard. However, the current Indian goverment's policies to improve the road network of India can prove to be a major opportunity for the companies engaged in the construction of transport infrastructure.

Indian goverment's Bharatmala Prayojna, a amibitious project to connect the entire country through a network of highways can drive the demand in the market in the coming years. It is a roads and highway project that aims to build highways from Maharashtra, Gujarat, Rajasthan, Punjab, Haryana and then cover the entire string of Himalayan territories. It is India's largest infrastructure program envisioned in 2017 that aims at building 34,800 km of National Highway Corridors that will connect 600+ districts.

In July 2021, Ministry of Road Transport and Highways granted 162 km road highway project worth USD 350 million. This road highway is a part of economic corridor under Bharatmala Prayojna. It aims to connect Andra Pradesh and Telangana via a robust road infrastructure network.

Growing Awareness and Importance of Waterway Infrastructure

Waterways are the cheapest mode of transportation. India has 116 rivers, this could provide a network of 35000 km. Cost of logistics in India in 18% of the total production cost while in China this figure is 8-10%. Waterways cover 47% of total transportation in China while it is 3.5% in India. Improvement in the waterway infrastructure could significantly reduce the logistics cost for India.

India understands this and has declared 111 of its rivers as national waterways in 2016. Till 2020, 22 of these waterways were operationalized. This number is expected to increase in the coming years . India's 111 national waterway's cargo handling capacity was 55 MT in 2017-18 which became 72 MT in 2018-19. The Inland Waterways Authorithy of India seeks to raise this cargo handling capacity to 100 MT by 2021-2022.

In March 2021, the government announced Sagarmala project focused on country's seaports. This is a USD 82 Billion project to be implemented through 2035. 574 projects have been identified under Sagarmala project for implementation. The project aims to unleash the economic potential of India by harnessing the 7500 km long coastline of the country. The project also seeks to boost the infrastructure for trasporting goods to and from the ports in an efficient way.

Competitive Landscape

Indian transportation infrastructure construction market in highly competitive with number of national and international players in it. It is expected to show a steady growth during the forecast period owing to the increasing amount of goverment investments in the sector. There is always a room for small players to enter the market due to number of projects on the line. Some of the key players in the market include Larsen & Toubro Limited, Meil, TATA Projects, Shapoorji Pallonji and KEC International Limited among others.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2.1 Analysis Methodology
2.2 Research Phases
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Value Chain / Supply Chain Analysis
4.4 Industry Policies and Regulations
4.5 Technological Developments in the Sector
4.6 Industry Attaractiveness - Porter's Five Forces Analysis
4.7 Impact of COVID-19 on the Market
5.1 By Application
5.1.1 Urban
5.1.2 Rural
5.2 By Mode
5.2.1 Roadways
5.2.2 Railways
5.2.3 Airways
5.2.4 Ports and Inland Waterways
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 TATA Projects
6.2.2 Larsen & Toubro Limited
6.2.3 KEC International Limited
6.2.4 Shapoorji Pallonji
6.2.5 Meil
6.2.6 IRB Infrastructure Developers Ltd.
6.2.7 Eagle Infra India Ltd.
6.2.8 Reliance Infrastructure Limited*

Companies Mentioned

A selection of companies mentioned in this report includes:

  • TATA Projects
  • Larsen & Toubro Limited
  • KEC International Limited
  • Shapoorji Pallonji
  • Meil
  • IRB Infrastructure Developers Ltd.
  • Eagle Infra India Ltd.
  • Reliance Infrastructure Limited*