August 23, 2017
For the first time since Independence, analysts on the subcontinent are predicting a surplus of generating capacity in electricity across India’s extensive chain of power stations, solar power facilities and wind farms; and it’s not the only India’s energy infrastructure that is booming at the moment. Railways, Highways and Bridge Building Projects are witnessing an unprecedented surge in growth too.
These are the outward signs of an increasing economic strength and resilience in the fastest growing large economy on the Planet.
Take Highways Infrastructure for a start: where, until recently, snowfall used to block passage into Kashmir for weeks at a time and floods all but closed off access to the northeast territories, Prime Minister Modi’s Government delivered India’s longest river bridge in May of this year (all 9.15 km of it, connecting Assam and Arunachal Pradesh); and the extraordinary Jammu to Srinagar Tunnel now makes Kashmir accessible all year round. And it is a joined up policy too: we are about to see completion this month of the world’s highest railway bridge, linking Kashmir to India by rail for the first time
While we’re talking of rail infrastructure, where we have all grown familiar with stories of India’s trains chugging across the countryside at an average speed of thirty miles per hour, the average speed of rail travel on the subcontinent is now a (very) respectable 140 km/h; contrast that with the average speed of a train on the United Kingdom Rail Network, in case you were wondering, which is 95 km/h or 130 km/h if you exclude urban conurbations).
The sheer pace of India’s progress both in relative and absolute terms is breathtaking; drawing on repeated, equally breathtaking injections of public spending from Prime Minister Modi’s Government now deployed increasingly in conjunction with private finance through an increasingly liquid and transparent Bombay Stock Exchange, there is an obvious recognition on the subcontinent of the the critical role which infrastructure spending has to play in a developing economy.
It also vindicates Red Ribbon’s investment strategies.
With floods currently displacing millions in the Northern Indian States as a result of extreme weather events and an increasingly urbanised population on the subcontinent as a whole having better access to a mobile phone systems than effective sanitation facilities, these huge infrastructure initiatives point the way forward across India: sustaining future economic growth in a manner likely to have the most positive impact on the wider community and on the economy at large. Increased electricity generation will bring sustainable power to India’s rural communities for the first time; road and rail infrastructure spending on the current scale will generate mainstream, long term economic projects for the benefit of communities, the wider economy and the environment as a whole.
That’s what Mainstream Impact Investment Means and that’s why it remains central to Red Ribbon’s investment strategies on the subcontinent.
Read more about the Bhupen Hazarika Bridge Project here
Read more about the Indian Government’s Infrastructure Policies here