On the other hand, delay in privatisation initiatives or changes in policies can have a significant impact on investments in most sectors except telecom and oil and gas. Crisil research believes that speedy infrastructure reforms will lead to significant private investment in the sector. Power and ports will be two key sectors where investments need to accelerate so as to ease the growth constraints.

According to the report `Indian infrastructure: risk and investment opportunities', infrastructure is set to expand significantly with the high investment planned, the increasingly complex nature of projects and a larger participation from the private sector fuelled by high expectations from various stakeholders. Risks associated are also higher now due to resource constraints, cost escalation of materials and services, and increasing financing costs.

However, the report observed that the fiscal position of the Centre and state governments can have a bearing on infrastructure investments apart from slower economc growth and policy stagnation. While the fiscal position of the Centre and state governments have grown in strength as compared with the previous five years, rising subsidies and employee costs worsen the fiscal balance, limiting the government's ability to invest in infrastructure.

Morerover, non availability of inputs and finance can delay infrastructure investments. Problems related to land acquisition and constrained availability of labour and equipment can hinder investments in roads, ports, airports, power projects and SEZs. Project execution risk has also increased, since projects have become larger and more complex. On top of it, the rates of return have declined due to rising input costs, while cost of finance has increased. This is one of the key challenges for infrastructure investments in the current economic context.

DK Joshi, Crisil's director and principal economist said, "Beneath the surface impression of slow movement in infrastructure and related projects, there is a dynamism that is far more powerfurl than anything we have seen before."