India will need $2.5 trillion infra spending by 2032: Adani

Gautam Adani highlighted that emerging infrastructure sectors – infrastructure to enable energy transition and digital infrastructure, as key to future growth of the country as well as the global GDP.
The chairman of Adani group, Gautam Adani
The chairman of Adani group, Gautam Adani Reuters

NEW DELHI: India’s cumulative infrastructure spending by 2032 will exceed $2.5 trillion by 2032, the year when India is likely to become a $10-trillion economy, the chairman of Adani Group, Gautam Adani said while addressing the ‘Infrastructure – The Catalyst for India’s Future’ event organised by Crisil on Wednesday.

While the Adani group chairman credited the the period between 1991 and 2014 for putting down the foundations and building the runway for India’s growth, he said that the period from 2014 to 2024 has been about the aircraft taking off.

“And a strong example of this ‘take off’ is the National Infrastructure Pipeline the NIP program. The core essence of the NIP is its integrated approach involving participation from both the public and private sectors with the funding model divided between the two. I consider the NIP program that has earmarked a projected investment of Rs. 111 lakh crore over the period FY20-25 as a benchmark of how a government can put in place a national view of over 9,000 infrastructure projects across sectors like energy, logistics, water, airports, and social infrastructure,” he said during his address.

Gautam Adani highlighted that two emerging infrastructure sectors – infrastructure to enable energy transition and digital infrastructure – as key to future growth of the country as well as the global GDP.

He pointed out that the global energy transition market, which was valued at approximately $3 trillion in 2023 and is expected to grow to nearly $6 trillion by 2030, and thereafter double every 10 years till 2050.

Talking about India’s target of installing 500 gigawatts of renewable energy capacity by 2030, Adani said the country will need annual investments of over $150 billion to achieve this target.

“The transition to green energy in India is expected to generate millions of new jobs in sectors such as solar and wind, energy storage, hydrogen and its derivatives, EV charging stations, as well as grid infrastructure development,” he added.

He also said that the infrastructure required for energy transition and the infrastructure required for digital transformation are now inseparable as the technology sector becomes the largest consumer of the precious green electrons.

Adani said that by the time India’s GDP touches $30 trillion, the stock market capitalisation would exceed $40 trillion.

“What this effectively means is that over the next 26 years, India will potentially add 36 trillion dollars to its stock market capitalization. No other nation is remotely close to such a scale of possibility,” he emphasized.

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