Infra sector outlook strong as 42 pc of India's population set to be urban by 2030: Report

New Delhi, Aug 26 India's infrastructure sector is set for huge expansion despite global uncertainties, as 42 per cent of India's population is projected to be urban by 2030, a report said on Tuesday.

According to CareEdge Ratings' report, government initiatives such as Gati Shakti and the National Infrastructure Pipeline will accelerate the growth of the infrastructure sector, which will, in turn, drive urbanisation.

The toll road traffic is expected to grow at a stable rate of around 7 per cent in FY26, supported by strong domestic coal production, multi-modal logistics development, and the government’s focus on creating industrial corridors.

Further, the monetisation outlook remains robust, with a pipeline of NH-HAM projects valued at nearly Rs 2 lakh crore scheduled to be unlocked by FY28, the report said.

Traffic diversion from greenfield expressways, increasing modal shift to rail, and regulatory uncertainties at the state level could weigh on the sector’s growth trajectory, the report noted.

Analysts opined that India’s infrastructure sector is at an inflexion point, supported by proactive government policies, urbanisation, and private capital participation.

"While traditional segments like roads, power, and airports remain core growth drivers, the next wave will be led by energy storage, data centres, and green hydrogen. Addressing regulatory and execution challenges will be vital to sustain momentum and unlock the sector’s full potential,” said Sachin Gupta, Chief Rating Officer & ED CareEdge Ratings.

Further, the airports anticipate a 7 per cent increase in passenger traffic by FY27. Ports forecast a modest 2 per cent growth in cargo, with container traffic expected to rise by 8 per cent. The power sector expects non-fossil sources such as solar and wind to account for 35 per cent of generation by FY30, aided by better financial health and lower storage costs.

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