ECONOMICOUTLOOK
Infrastructure first
25
april 2014
international
construction
so over the forecast. India absolutely has to invest
in additional infrastructure in order tomeet even
its reduced economic outlook.
The forecast does assume some structural reform
in order to attract private capital into public-
private partnerships. India has proven that this
canwork for airports – the next step is to expand
that success to roads, railways and electrical
generation, transmission anddistribution.
must bemet. For India to realise its potential, the
education system requires significant investment,
and the expectation is that the new government
will begin to address this.
The challenge for India is to overcome the
‘license raj’ to free up its abundant resources for
economic growth. If the new government can
succeed with these measures, the construction
outlook couldbe quite attractive.
iC
IHSGlobal Insight
Recognised as themost consistently accurate
forecasting company in theworld, IHS Global
Insight has over 3,800 clients in industry, finance,
and government with revenues in excess of
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around theworld in 30 countries. 80% of Fortune
500 companies are customers of IHS Global Insight.
■
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Potential
While the construction outlook for India has
diminishedwithweakness inEurope and recovery
in North America, it still offers significant
potential. The next two years will feature slower
construction than we have come to expect from
India, but still strong by global standards.
The continued emergence of India’s economy is
clear, and theneed fornew andupgraded facilities
16%
14%
12%
10%
8%
6%
4%
2%
0%
2010
2011
2012
2013
2014
2015
2016
2017
Residential
Transportation
Energy
Structures
Annual growth (constant US$2010) bymajor building type
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