Budget boost for India infrastructure

With such large-scale government investment planned, the outlook for construction in India is positive. However, there are major questions over how this planned public investment will be funded, particularly in terms of the massive railway investment, as raising passenger fares would be politically challenging.

Nevertheless, in view of the general strengthening in the economy, the gradual removal of barriers to foreign investment, and the easing of rules relating to construction, private investment will be a pillar of support for growth in the industry over the coming years.