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Global Economics

Leaders Give Failing Grade to India Infrastructure

Corporate leaders in India are stressing the need for government investment in the country's physical infrastructure

More than a third of corporate leaders in India feel physical infrastructure in the country is inadequate, highlighting the need for heavy government investment in the sector.

A majority of the executives surveyed, 47% of whom were CEOs, said the government should partner the private sector to finance major infrastructure projects. Social infrastructure was also cited as an area of concern by corporate leaders responded to the survey conducted by KPMG and Economist Intelligence Unit. Executives across the world said the governments needed long-term strategies for infrastructure, adequately funded and backed by political will.

Nearly nine in 10 respondents in the country said the current investment in infrastructure is insufficient to support the long-term growth of their firms.

While 38% respondents in India said the existing infrastructure was inadequate, only 5% corporate leaders in China felt infrastructure facilities there were inadequate.

The corporate honchos were also concerned about the quality of infrastructure with roads and bridges being structurally deficient or functionally obsolete. India has 10% of the world's road deaths with just 1% of its automobiles.

Availability of infrastructure impacts operating cost and is, therefore, a major factor in strategic planning and decision-making, felt 90% the respondents. According to the survey, most of the executives termed roads and power generation as key infrastructure.

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