Business

India Poised For Ambitious Infrastructure Revolution: KPMG Report

According to a KPMG report, India is on the brink of one of the most ambitious infrastructure programmes of the 21st century, which could reshape its economy.

As the nation continues to grow rapidly, the success of this initiative will largely depend on creating fiscal sources of capital, with the report emphasizing the importance of unlocking both foreign and domestic investments.

The report highlights, “Steps to unlock foreign and domestic capital via innovative financial structures and facilitating ease of investments would be vital.”

This comes at a time when India is emerging as the world’s fastest-growing major economy, supported by significant government spending on infrastructure projects.

The ‘KPMG 2024 Infrastructure and Transport CEO Outlook’ reveals that 63% of CEOs in the infrastructure and transportation sector expect earnings to grow by over 2.5% in the next three years.

However, they also express concerns about the impact of emerging technologies like generative AI, the global economic climate, and talent shortages.

Additionally, 57% of global CEOs in the sector believe stakeholder expectations around Environment, Social, and Governance (ESG) are evolving faster than their strategies can adapt.

More than half of the surveyed CEOs are also worried about the risks of failing to address climate change, which they believe could affect their growth in the short to medium term.

KPMG Report: CEOs In Infrastructure Focus On AI, Talent, & Climate Risks

Manish Aggarwal, partner and co-head of Deal Advisory at KPMG in India, noted that the adoption of emerging technologies like generative AI has become a top priority for CEOs in the infrastructure and transport sectors.

The KPMG report states, “The CEOs in our survey noted concerns related to talent shortages, technology adoption and climate risk. They say they are worried about the risks of generative AI and missing their Net Zero targets. They talk of shifting stakeholder expectations and complex technology environments.”

“Yet they also show encouraging ambition and action. They are intent on investing into expanding their AI capabilities and skills. They are prioritizing their workforce and developing their talent. Perhaps most importantly, they are more focused than ever on building public trust,” the report added.

The 10th edition of the KPMG CEO Outlook surveyed 1,325 CEOs between July 25-29, 2024.

All participants lead companies with annual revenues exceeding USD 500 million, and one-third represent firms generating over USD 10 billion annually.

Meanwhile, the survey covered CEOs from 11 major markets, including: