India's planned infrastructure outlay over the next five years has been revised upward by various government authorities, from $150 billion to almost $475 billion. The country currently spends around $21 billion a year on infrastructure, compared to China's $150 billion. Corporate capital spending tracked by research firms like the Centre for Monitoring Indian Economy (CMIE) is at a multi-year high in India. The effect of all of this demand can be seen in the order books of infrastructure builders, which have also reached a multi-year high.
Although construction companies are prepared to spend money to raise their production capacities, experts say that a shortage of skilled talent and the limited ability of capital equipment suppliers to meet demand mean that skillful project management and innovative solutions will be necessary to prevent bottlenecks.
