Summary - Investment Opportunities in Indian Infrastructure 2024

Over the past few years, the Indian government has made concerted efforts to seek GCC investments in India, particularly in the infrastructure sectors. These efforts have already begun to pay off.

UAE is currently exploring investment opportunities in India worth $50 billion, including stakes in key infrastructure projects and state-owned assets. Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) have committed to co-invest $44 billion in Ratnagiri Refinery and Petrochemicals Limited. DP World has set up a platform worth $3 billion with the National Investment and Infrastructure Fund to invest in ports, terminals, transportation and logistics. Abu Dhabi Investment Authority (ADIA) has co-invested $1.5 billion in Reliance’s warehousing assets, around $1.01 billion in the Digital Fibre Infrastructure Trust and $600 million in JSW Energy. Mubadala has co-invested $525 million in Tata Power Renewable Energy Limited. Qatar Investment Authority has jointly invested $393 million in IndoSpace Logistics Parks. The Oman Investment Authority and the State Bank of India have announced the third tranche of the Joint Investment Fund worth $300 million.

The investment landscape has also evolved favourably. The current foreign direct investment policy permits 100 per cent foreign investment under the automatic route in most infrastructure sectors. Investors are also attracted to the strong growth prospects of the Indian economy. Saudi Arabia’s Public Investment Fund has announced to set up an office in Gujarat International Finance Tec-City (GIFT) - A Global Financial Hub, as part of their plan to invest $100 billion in India.

India has set an ambitious target of 450 GW renewable energy capacity by 2030, creating sizeable investment opportunities in solar, wind, and clean energy projects. Green hydrogen, a promising solution for decarbonisation, presents long-term investment opportunities.

Sectors like roads, highways, logistics, ports are also developing at a rapid pace and are attracting significant interest from GCC investors. ADIA and Mubadala have invested in highways. DP World who has been operating in India since 1997, has recently signed multiple MoUs worth $3 billion with the Government of Gujarat to develop ports, terminals and economic zones. Aramex and MSC Emirates are some of the notable players operating in the Indian ports, shipping and logistics sector.

India is committed to bringing down its logistics cost and has ambitious plans to ramp up its overall logistics and multimodal infrastructure. Segments like warehousing, e-commerce and cold chain are also offering promising investment opportunities. The growing push towards digitalisation is also opening several investment opportunities in the areas of technology, platforms and data centres.

There are many investment avenues in infrastructure sectors – InvITs, equity funds, infrastructure bonds, greenfield and brownfield projects, operational assets, developer firms, supplier businesses, etc. The Indian market is currently offering high-quality assets with realistic valuations, supported by conducive policies and promising returns.

The mission of this conference is to provide an independent, fact-based perspective on both the opportunities and challenges associated with investing in India infrastructure. It will provide a platform for existing investors to share their experience and for future investors to discuss their expectations and concerns. The conference will also examine sector-specific opportunities and discuss the fiscal/regulatory regime.