India’s infrastructure is lagging far behind...

For the aspirational individual, these are good tidings, but in terms of macro sustainability factors, it assumes the form of a serious issue. India’s infrastructure is lagging far behind the projected growth rates and it’d be foolish not to come to terms with the fact. India spends a lowly 3.5% of its $700 billion GDP on infrastructure development and it’s obviously not enough to overhaul the deeply congested roads, leave alone lay out a decent public transport system. Meanwhile car companies are continuing with their capacity expansions, Hyundai has already planned to increase its capacity to 400,000 units by 2007 and others are following suit. Arun Arora of Maruti Suzuki believes that though western markets are saturated now, the Indian market still has potential for growth, as more people aspire to own cars.

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Source: IIPM Publication