India's 'Big Dig' - The Rural ROADS Project

Since 2003, India's government has been working on a Large-scale, domestic project of building a MASSIVE Network of ROADS connecting previously unconnected sections of India's largest and most rural populations. For some perspective, India is adding 62 miles of ROAD EACH day. The project is expected to complete in two years (2010)...once complete, all Indian villages with 1,000 residents or more will have access to 'all-weather' roads (this figure is up from 40% when construction began in 2003).

In terms of stimulating India's slowing economy (by the way, India is still the 2nd fastest growing country in the world...China is #1...some annual IMF numbers are provided below), the ROADS project speaks for itself in terms of job creation and productivity enhancements. Expanding a little further on the idea of productivity enhancements, one should not OVERlook the impact this ROADS project will ultimately have on India's Retail environment and Domestic consumer. The below article details a couple of interesting and culturally significant examples about the various types of consumer productivity gains that can be had courtesy of the ROADS project :


bloomberg.com/apps/news?pid=20601109&sid=anT08lWTqguk&


Per the above link:
* India's National Rural Roads Development Agency is overseeing + in charge of spending for the $27 Billion ROADS infrastructure project...the Rural Roads program is being funded by India's government using revenue from a tax imposed on the sale of diesel fuel

* The International Monetary Fund forecasts India's economy to grow 6.3% in 2009 (vs. 7.8% in 2008)...The IMF expects China's economy to grow 8.5% in 2009 (vs. 9.7% in 2008)

* Domestic consumer spending currently makes up 55% of India's economy (GDP)...in comparison, domestic consumption only accounts for 37% of China's export-heavy economy

* According to Haier Appliances (China's largest home appliances retailer that now has operations in India) :

Only 20% of Indian households own a refrigerator

Only 27% of Indian households own a television

Only 3% of Indian homes have air-conditioning installed



Data Courtesy: Bloomberg