Delays in infrastructure to cost India $200b
A study conducted by global management consultancy McKinsey has revealed that delays to India’s infrastructure plans could end up costing the nation $200 billion in output, and some 35 million jobs over eight years.
The Indian government has forecast the need for $500 billion in infrastructure by 2012, but the McKinsey report, Building India: Accelerating Infrastructure Projects, indicates that India’s capacity for rapid modernisation may be lacking.
The report stated: “Inefficiencies in implementing infrastructure projects in India occur at every step. Data from government and industry suggest that on average each project suffers from 20-25 percent time and cost overruns, while in some sectors this is as high as 50 percent.”
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