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Infrastructure construction is the second largest economic activity in India after agriculture, and has been growing rapidly. The investment in construction accounts for nearly 11% of India Gross Domestic Product (GDP) and nearly 50% of its Gross Fixed Capital Formation (GFCF) It accounts for 65% of the total investment in infrastructure and is expected to be the biggest beneficiary of the surge in infrastructure investment over the next five years.

1. An investment of Rs 14,50,000 crore or about USD 320 billion would be required in the infrastructure sector during the Eleventh Five Year Plan(2007-08 to 2011-2012).

2. Investment requirement by 2012, estimated by the Committee on infrastructure, headed by the Prime Minister, in some of the key sectors are Rs 2,20,000 crore for modernization and upgradation of Highways, Rs 40,000 crores for Civil Aviation, Rs 50,000 crores for Ports,Rs 3,00,000 for the Railways.

3. The Government of India has initiated the Jawarharlal Nehru National Urban Renewable Mission to develop urban infrastructure, provide basic facilities and urban services to 63 cities all over the country. Estimated to involve a capital outlay of Rs 1,20,536 crore

.4. There is a shift in the policy of the government to finance infrastructural projects through Public Private Partnerships (PPP's) Through a range of Build Operate Transfer (BOT), Build Own Operate Transfer (BOOT), Build Own Lease Transfer (BOLT) etc. are increasing becoming a preferred mode for construction and operation of infrastructure services such as highways, airports, ports etc.