New government to boost infrastructure sector, but expect some hurdles

Core sector growth rose to 6.1 per cent YoY in Apr'24 over Apr'23, as every sector except fertilisers and cement saw strong growth

The General Elections inevitably led to a slowdown in government projects through Q4FY24 and Q1FY25 with muted activity. The installation of a coalition could mean changes in policy focus which will only become apparent as and when the FY25 full year Budget is announced. The market was banking on strong rumours that the last government had put together a 100-day plan to accelerate the thrust on infrastructure spending and on defence production.

Assuming some version of that 100-day plan is rolled out, it could lead to a bounce in activity across roads, and renewable power in particular. In addition, some