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The Benefits of Infrastructure Status in India


Infrastructure status in India has significantly influenced the dynamics of the Construction Project Management sector. This status, conferred by the government, is instrumental in shaping the course of development projects across the nation. It plays a pivotal role in driving economic growth, catalyzing private investments, and streamlining project execution. This article delves into the impact and benefits of infrastructure status on Construction Project Management in India, offering a comprehensive understanding of its relevance in today's economy.

Understanding Infrastructure Status

Infrastructure status, as deemed by the Government of India, is a special recognition given to certain sectors or industries that are considered crucial for the country's overall economic progress. This status often comes with a host of benefits, such as access to cheaper finances, tax breaks, and regulatory support, to stimulate growth and attract investments. In the context of Construction Project Management, infrastructure status can significantly enhance the viability and efficiency of projects, paving the way for accelerated development and economic prosperity.

The Evolution of Infrastructure Status in India

The concept of infrastructure status is not new to India, with its roots tracing back to the 1940s when the government identified certain industries as essential for national development and provided them with special treatment. However, it was only in 2012 that the Indian government formally introduced the concept of infrastructure status, which included sectors like power, transportation, telecommunications, and housing. Over the years, more industries have been added to this list, including construction, renewable energy, and social infrastructure. This progressive move by the government has led to a significant boost in India's overall infrastructure development.


Benefits of Infrastructure Status

The benefits of obtaining infrastructure status are numerous and far-reaching, particularly for the Construction Project Management sector. Some of the key advantages are discussed below:

  1. Access to Cheaper Finances-  Infrastructure status provides construction projects with access to cheaper finances in the form of loans, credit facilities, and other financial assistance from banks and financial institutions. This is because infrastructure projects are perceived as less risky investments by lenders due to their assured revenue streams and government support. With easier access to finances and lower borrowing costs, construction projects can be completed more efficiently, leading to timely delivery and increased profitability.

  2. Boost in Foreign Investments- Infrastructure status is a significant driver of foreign investments in the Construction Project Management sector. The special recognition given by the government instills confidence among foreign investors, encouraging them to invest in infrastructure projects. This, in turn, not only brings in much-needed capital but also helps boost the economy and create employment opportunities. With a robust foreign investment inflow, construction projects can be completed on a larger scale with better quality and advanced technology.

  3. Enhanced Project Efficiency- Infrastructure status promotes efficient project management by providing access to cutting-edge technology, skilled manpower, and streamlined regulatory processes. With easier access to resources and support, construction projects can be executed more efficiently, resulting in timely completion and cost-effectiveness. This also leads to improved project outcomes and increased customer satisfaction.

Case Studies

Several Indian construction projects have reaped the benefits of infrastructure status, demonstrating its positive impact on Construction Project Management. For instance, the Delhi Metro Rail Corporation (DMRC), which received infrastructure status in 2014, has seen a significant reduction in borrowing costs and an increase in foreign investments. This has enabled DMRC to expand its network and improve the efficiency of its operations, providing citizens with better connectivity and reducing traffic congestion.

The Future of Infrastructure Status in India

The construction industry is expected to witness robust growth in India, with infrastructure projects contributing significantly to the country's economic progress. The government has also recognized this potential and is continually expanding the scope of infrastructure status to include more sectors. This move is expected to attract even more investments, accelerate development, and create job opportunities for millions of people in India.


Infrastructure status has been a game-changer for the Construction Project Management sector in India. Its benefits have played a crucial role in boosting economic growth, attracting investments, and improving project efficiency. With the government's continued efforts to promote infrastructure development, the future looks bright for the Indian construction industry. It is safe to say that infrastructure status will continue to be an integral part of India's journey towards becoming a global economic powerhouse.


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