Infrastructure

There are great opportunities for the engineering and construction (E&C)industry in India, one of the fastest growing economies in the world. We focus on the structuring opportunities and some of the challenges overseas participants are likely to encounter. India’s economy is big and getting bigger. It is estimated that India will become the world’s third largest economy by 2050. Liberalisation of government regulations and a deliberate strategy on the part of the Indian Government to promote infrastructure spells opportunity for E&C companies.

Nearly all of the infrastructure sectors present excellent opportunities, with roads and highways, ports and airports, railways and renewable power standing out as particular bright spots, with staggering sums of investment planned. Public private partnerships (PPPs) are gaining in importance, and are benefiting from government support – targeted PPP. Companies experienced in structuring these types of deals should be able to use their expertise to good effect in the Indian marketplace. Operating in India requires a thorough understanding of the local market.

We can help you to do the homework in order to understand a host of tax and regulatory issues before bidding on projects or setting up operations. Whether or not a permanent establishment is created, how onshore versus offshore services and supplies are managed in a particular contract, and indirect tax implications can all have a major impact on the bottom line. Further, foreign players are likely to need to identify promising local companies, then make a case for a profitable partnership, in order to achieve a win-win situation in India. Still, there is a strong rationale for many E&C companies to invest in India sooner, rather than later. Not only are there substantial opportunities now, but establishing relationships and a presence in the market can help to ensure continuing project potential over the medium- and long-term.

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