Frost & Sullivan: Infrastructure Opportunities Abound in India
Investment in airport infrastructure development in India will jump from $5 billion in 2008 to $9 billion by 2013, according to a new analysis of the region by Frost & Sullivan.
Large-scale expansion in the Indian airport infrastructure market coupled with active government support for private participants has enabled the sector to make huge strides, the New York-based research company says.
“Strategic Opportunities in the Indian Airport Infrastructure Market” estimates roughly $6.8 billion of the $9 billion pegged for infrastructure development will come through public private partnerships.
Key drivers for airport infrastructure development in India have been emerging business places, increased scope for connectivity, operating models of airlines, government initiatives and the dynamic growth of tourism.
Over the 2009-2013 period, domestic passenger growth is expected grow 20 percent while international traffic rises 16 percent. Domestic and international cargo growth is pegged at 12 percent and 10 percent, respectively.
But “the gap between developmental needs and funding is wide, posing limitations on the ability of the government to satisfy growth and opportunities for private players," says Ratan Shrivastava, Director Aerospace & Defence Practice at Frost & Sullivan.
"Long-term sustainability of the airports in terms of funding is an issue for the government. Factors including the lack of indigenous technical and administrative expertise are perceived as prime reasons for poor planning and management, according to our recent research," he says.
Nonetheless, Frost & Sullivan sees “immense opportunities” in the next five years for all vendors and stakeholders in the Indian airport infrastructure markets across all segments including airport security, airport communication, navigation and surveillance, access control and perimeter security as well as airport maintenance.
