CareEdge Ratings’ latest sectoral outlook highlights India’s infrastructure as a key driver of long-term economic growth, delivering a 2.5x GDP multiplier. Backed by initiatives like Gati Shakti and the National Infrastructure Pipeline, the sector is set to accelerate urbanization and support sustainable energy transition, despite geopolitical challenges.
In roads and highways, execution may slow by 7–10% in FY26 due to delays in Hybrid Annuity Model (HAM) approvals, though toll traffic is expected to grow at 7%. Monetization remains strong, with a Rs2 lakh crore NH-HAM pipeline projected by FY28. Challenges include traffic diversion, rail modal shifts, and regulatory hurdles.
India’s airport sector is projected to grow at a 7% CAGR between FY25–FY27, slightly below earlier estimates due to aircraft delays and global travel disruptions. Still, India remains the world’s third-largest aviation market, with strong fundamentals driving long-term investment in airport infrastructure.
The power sector is undergoing a clean energy shift, with solar and wind expected to contribute over 35% of total generation by FY30. AT&C losses have dropped to 15–16%, and thermal PLFs have improved to 70%. While renewables lead future growth, thermal energy remains vital for grid stability, with 33 GW under construction.
Energy storage is gaining traction, with Battery Energy Storage Systems (BESS) achieving record-low tariffs. MNRE’s Viability Gap Funding schemes support 43 GWh of capacity, while domestic solar manufacturing is scaling rapidly under production-linked incentives and import barriers.
Emerging segments like data centers are set to attract Rs60,000 crore in investments between FY26–FY28, driven by digitalization, 5G, and AI. With capacity expected to double by 2028, India is positioning itself as a major data hub in Asia.
