Government estimates that US$ 500 billion needs to be invested In India's antiquated infrastructure. Infrastructure spending has been increased in an effort to counteract effects of the global slowdown and rebuild India's slowing economy.

Damage to economy and workforce

Yet, McKinsey - in their report, Building India: Accelerating Infrastructure Projects - estimates that delays to major projects are likely to cost the economy US$ 200 billion and 35 million jobs over the next 8 years.

According to McKinsey, 35 million new jobs would lower unemployment by 6%, potentially lifting 4% of the country's population out of poverty. In addition, this poor performance is likely to reduce economic growth by 1%, estimated at 7.5% in 2017.

Foreign investment in 139 upcoming highways projects

Unfortunate timing, publication coincided with road transport and highways minister Kamal Nath attempting to attract foreign investment for 139 new highways projects, covering nearly 15,000 km's and likely to cost a total of US US$ 21 billion.

25% over-run and over-spend

The report highlights inefficiencies at every stage of infrastructure implementation from tender to completion. End result - they conclude - is an average of 20-25% time and cost over-runs on major projects.

To illustrate the point the report claims that building a thermal power plant in India takes three and a half years, compared to under one year in China.