Resource information
Over the last few years, the Indian
economy has been in a phase of unparalleled growth of about
8-10 percent per year, making it one of the fastest growing
economies in the world. Sustaining this rate of growth will
need huge investments in physical infrastructure such as
roads, water, power, and urban sectors. Preliminary
estimates suggest that investment in infrastructure would
need to increase from the current 4.6 percent of gross
domestic product (GDP) to about 8 percent during the 11th
Plan. An efficient transportation system is critical for
sustaining economic growth and the burgeoning demand for
passenger and freight movement. Recognizing this, the
Government of India (GOI) and several state governments have
launched initiatives during the past decade to modernize and
improve the transport infrastructure. This study stems
partly from GOI's concern regarding the capacity of the
road construction industry to deliver, and partly from the
Bank's growing need to understand the impact of the
expanded road investments on the industry's capacity in
South Asia. The study attempts to outline the entire gamut
of problems and capacity constraints faced by India's
construction industry. It builds on previous studies,
reports and industry-wide stakeholder surveys and workshops.
It recommends key actions to the central and state
governments and the industry for enhancing its capacity and efficiency.
