India is on the brink of a significant infrastructure transformation, with investments totaling Rs 143 trillion projected for the period from 2024 to 2030, as declared by CRISIL, a leading analytics firm. This financial commitment is more than double the Rs 67 trillion allocated during the previous seven fiscal years. CRISIL's top executive, Amish Mehta, thinks that India is going to grow really fast and become one of the biggest economies, with its money-making engine, known as GDP, increasing by about 6.7% every year until 2031.
India's per capita is expected to rise from $2,500 - $4,500 by 2031, and If this happens, India will become a middle-income country. This promising growth trajectory is underpinned by extensive infrastructure development with a keen emphasis on sustainability.
Of particular note are green investments, which are expected to reach Rs 36.6 trillion—a fivefold increase from 2017. The upcoming phase of infrastructure expansion will feature a surge in the average project size, including numerous mega-scale projects. The establishment of coherent policies, regulatory interventions, and a commitment to timely execution all make a compelling case for accelerating investments across various infrastructure sectors, according to CRISIL.
CRISIL's analysis predicts that established sectors such as roads and power will continue to be major contributors to this surge in infrastructure investments. Simultaneously, emerging sectors like EVs, solar energy, wind power, and hydrogen are set to see gradual but substantial growth.
The EV sector is poised for remarkable expansion, with EVs projected to constitute 30% of India's total automobile sales by 2030. Two-wheeler EV sales are expected to outpace other segments by 2028.
Green investments in alternative fuels are projected to grow, and the adoption of innovative technologies like "floatovoltaics" (floating solar), offshore wind, and green hydrogen is highly encouraged. CRISIL emphasized India's growing hydrogen sector, which is poised to attract substantial investments—estimated at Rs 1.5 trillion between fiscal years 2024 and 2030—driven by government incentive schemes. Green hydrogen mandates and incentive programs are crucial in this context, particularly given that the production cost of green hydrogen is double that of fossil-based hydrogen.
Significant investments are needed across a wide range of core infrastructure sectors. These requirements can be met through increased activity in the bond market, heightened foreign investment interest, and strong equity markets. CRISIL believes that India's inaugural sovereign green bond issuance will lay the groundwork for the development of the domestic bond market for green projects, aligning with the growing global appetite for green bonds.