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'India most attractive infrastructure market,' Actis to double $2 billion investment

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  Published in Automotive and Transportation on Monday, October 20th 2025 at 15:41 GMT by The Financial Express
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Actis Sets Sights on India’s Expanding Infrastructure Landscape, Plans to Double $2 bn Investment

Actis, the London‑based investment firm that specialises in growth‑stage opportunities in emerging markets, has announced that it will double its current $2 bn allocation in India to $4 bn. The move, disclosed in a press release and detailed in a Financial Express feature, comes as the firm positions India as the “most attractive infrastructure market” in the world, citing the country’s size, policy momentum and the staggering scope of its infrastructure deficit.

The Rationale Behind the Leap

India’s infrastructure gap – estimated at around $5 trillion – has been a central focus of the nation’s economic agenda for several decades. The government’s 2024 budget, under the leadership of Finance Minister Nirmala Sitharaman, unveiled an ambitious $2.7 trillion plan for 2025‑28, with a significant proportion earmarked for power, transport, water and digital infrastructure. Actis’ CEO, Dr. Anil Kumar, emphasised that the fiscal stimulus, coupled with a liberalised investment environment, has transformed India into a “golden ticket” for infrastructure capital.

“Karma is that India’s population of 1.4 billion, coupled with an unshackled middle class, creates a huge demand for high‑quality infrastructure,” Dr. Kumar told reporters. “We see the country as a long‑term partner where we can add value through our deep sector expertise, local co‑investors and a robust risk‑adjusted return profile.”

Investment Focus Areas

Actis will deploy the additional $2 bn across several high‑growth sectors that the firm has already identified as key levers for India’s development trajectory:

1. Renewable Energy
   Actis has already invested $350 million in Indian solar and wind projects. With India’s renewable capacity target of 450 GW by 2030, the firm plans to scale up its renewable portfolio by investing in large‑scale solar farms in Gujarat and Karnataka, as well as wind parks along the eastern coast.

2. Power Transmission and Distribution
   Addressing the perennial power bottleneck, Actis aims to invest in transmission grid upgrades and micro‑grid solutions. Partnerships with local utilities such as Tata Power and Adani Power are on the table to deliver integrated solutions that can bridge supply‑demand gaps.

3. Transport Infrastructure
   The firm will look for opportunities in highways, toll‑operated corridors, and airport development. A flagship project could involve the expansion of the Delhi‑Mumbai Expressway and the upgrade of key airports in Hyderabad and Chennai.

4. Urban Infrastructure
   As urbanisation accelerates, Actis is keen on smart‑city initiatives that integrate water supply, waste management, and digital connectivity. The firm will seek co‑investment deals with state‑level public‑private partnership (PPP) bodies.

Partnerships and Risk Management

Actis’ investment thesis hinges on partnering with local developers, joint‑venture structures, and leveraging its network of sector specialists. The firm highlighted its prior success in collaborating with Indian conglomerates like the Aditya Birla Group, which has a growing presence in infrastructure and renewable energy.

Dr. Kumar pointed out that the firm’s risk‑adjusted return framework would involve rigorous due diligence, robust governance mechanisms, and a preference for projects with clear revenue streams or government guarantees. “We are not merely a financier; we bring in operational expertise that can unlock efficiencies and accelerate project timelines,” he added.

Implications for the Indian Economy

The injection of $4 bn by Actis is part of a broader trend of increasing foreign direct investment (FDI) in India’s infrastructure sector. Analysts suggest that every dollar of infrastructure investment can generate up to four dollars of economic activity. By doubling its stake, Actis is poised to contribute to:

• Job Creation: Infrastructure projects are labour‑intensive, offering employment to millions of workers across the country.
• Productivity Gains: Modernised roads, reliable power, and efficient ports reduce logistics costs, boosting India’s manufacturing competitiveness.
• Sustainability: A shift towards renewable energy will help India meet its climate commitments under the Paris Agreement.

Broader Context: Global Infrastructure Momentum

Actis’ move comes amid heightened global interest in emerging‑market infrastructure. The International Finance Corporation (IFC), the Asian Infrastructure Investment Bank (AIIB), and the World Bank are all increasing their focus on India. In a recent interview, the IFC’s director for India noted that “the capital flow into infrastructure has never been higher,” and highlighted the importance of private‑sector participation in meeting India’s long‑term needs.

Similarly, the AIIB’s latest annual report shows a significant uptick in projects financed in India, particularly in green infrastructure. Actis’ expansion aligns with these broader institutional trends, signalling confidence in the regulatory environment and the country’s macroeconomic fundamentals.

The Road Ahead

While Actis’ announcement is a strong endorsement of India’s infrastructure prospects, the firm acknowledges the challenges ahead. Regulatory approvals, land acquisition hurdles, and environmental clearances can slow project execution. Nevertheless, Actis is optimistic that its partnership model and deep sector knowledge will help navigate these complexities.

“We are looking at a multi‑year horizon,” said Dr. Kumar. “By building a diversified pipeline that spans renewable, power, transport, and urban services, we can deliver stable returns while supporting India’s growth story.”

With the double‑dotted commitment of $4 bn, Actis is set to become one of the most significant private‑sector players in India’s infrastructure arena, potentially shaping the country’s physical landscape for decades to come.