India is positioning itself to implement one of the largest infrastructure programs of the 21st century, making it a key player in the global infrastructure and transport landscape. According to the KPMG 2024 Infrastructure and Transport CEO Outlook, India’s push to modernize and expand its infrastructure is part of an ambitious initiative that will significantly shape the country’s economy in the coming decades. The report, which surveyed 120 sector leaders globally, reveals that there is a strong sense of optimism in the infrastructure and transportation sectors, with business leaders confident about growth prospects over the next three years, particularly in areas such as earnings and headcount expansion.

India's Ambitious Infrastructure Plans

India’s infrastructure program, which is set to become one of the largest globally, will require substantial fiscal capital to succeed. This is where creating fiscal sources of capital becomes vital for the country's growth, as noted in the KPMG report. India’s infrastructure growth is not only expected to meet domestic needs but also contribute to global infrastructure development, especially in the context of transportation and smart city initiatives. With an increasing focus on sustainable growth, the expansion of green infrastructure and the development of smart transportation systems are at the forefront of India’s plans.

The report emphasizes that while growth is expected, India’s push toward such large-scale projects will need to navigate a range of challenges, including global economic uncertainties, climate change adaptation, and the rising importance of Environmental, Social, and Governance (ESG) issues. The government’s focus on infrastructure and urbanization is expected to contribute substantially to the economy, but it will also need to be aligned with sustainable practices that satisfy evolving stakeholder expectations.

Rapid Evolution of ESG Issues

A key insight from the KPMG survey is that 57% of CEOs in the infrastructure and transportation sector feel that the evolving expectations around ESG issues are moving faster than they can adjust their strategies. As the global focus on sustainability intensifies, there is an increasing pressure on businesses, especially in the infrastructure sector, to integrate sustainable practices in their operations. However, there are concerns that failing to meet climate adaptation goals could hinder the sector’s growth in the short to medium term.

The KPMG report underlines that climate change is no longer a future challenge but a present-day issue, with CEOs concerned about the short- to medium-term repercussions on their business operations. This has led to a growing sense of urgency within the sector, particularly for companies in India and other emerging economies, which need to address both sustainability concerns and public expectations around climate responsibility.

Stakeholder Expectations and Societal Challenges

The report also highlights an interesting shift in how companies view their role in society. 62% of CEOs believe that the public is increasingly turning to businesses to address societal challenges, as trust in governments continues to decline globally. This trend places even more responsibility on business leaders to implement innovative solutions to complex problems such as climate change, inequality, and social justice. Additionally, 71% of CEOs in the sector indicated that they would be willing to divest profitable segments of their businesses if those segments were found to harm their organization’s reputation or conflict with ESG goals.

The Role of Emerging Technologies

Among the key takeaways from the KPMG 2024 report, the adoption of emerging technologies like generative AI is becoming increasingly urgent for CEOs in the infrastructure and transport sectors. These technologies are seen as essential for improving operational efficiency and delivering more sustainable infrastructure solutions. Generative AI, in particular, holds the potential to revolutionize how infrastructure projects are designed, managed, and optimized, contributing to faster execution, cost reduction, and better resource utilization.

As India prepares to lead one of the largest infrastructure transformations of this century, integrating emerging technologies will be pivotal to meeting both growth and sustainability objectives. The country’s commitment to innovation, especially in the transportation and smart infrastructure spaces, aligns with global trends where technology and sustainability are closely intertwined.

India’s Role in the Global Landscape

India’s position in the global infrastructure sector is significant, not only due to its ambitious domestic projects but also because of the country’s growing influence in global infrastructure development. As the CEO survey points out, infrastructure is not only about meeting local demands but also contributing to global goals, particularly in sustainable development and climate action. By focusing on innovation and sustainability, India is laying the groundwork to become a global leader in the infrastructure sector.

Conclusion

The KPMG 2024 Infrastructure and Transport CEO Outlook paints a positive picture for India’s infrastructure future, as the country is set to undertake one of the largest infrastructure programs globally. However, the path to success will require addressing challenges related to climate change, ESG concerns, and the integration of emerging technologies. As India continues to grow its infrastructure capacity, it will also need to focus on sustainable growth and innovation to ensure that these projects contribute positively to both the economy and the environment.

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