Survey shows optimism with Indian infrastructure

According to the 1st round of the GRI Club Infra India Barometer, 74.4% of entrepreneurs and investors see a positive horizon ahead.

October / 2018

Entrepreneurs and infrastructure investors operating in India are predominantly optimistic about the industry over the next 12 to 36 months, as the first round of the GRI Club Infra Barometer carried out in the country shows. In the survey, 63.8% of respondents say they are optimistic, while 10.6% claim to be very optimistic. About 50 players were interviewed for the survey in October.

“The road, airport, and power generation and transmission segments are the ones that have attracted the most interest from investors”, comments GRI Club Global Infrastructure Head Pedro Nicolau.

When it comes to public-private partnerships and concessions, the road sector is at the top of the preference ranking, trailed by airports, power generation and transmission, and waste. In the merger & acquisition and consolidation sphere, roads are also at the top of the ranking; however, there are a few differences in the other positions: power generation (2nd place), airports (3rd place), power transmission (4th place), and power distribution (5th place).

Economy and investments

The outlook for the Indian economy as a whole was shown as somewhat less favorable than the one for the infrastructure sector. With the next 12 months in mind, 42.5% of those GRI surveyed believe that the economic performance will be similar to the current one, while a smaller portion, 27.7%, believe it will improve. The other 28.8% are pessimistic and believe economic indicators will slip in the period.

In their outlook for the economy, the industry, and for the companies themselves, entrepreneurs are divided insofar as investments are concerned: 48.9% say that their companies are investing and/or expanding businesses; 42.6% say they are observing and waiting to make decisions, and 8.5% say they are divesting and/or reducing the level of business.