The infrastructure sector is a key driver of the Indian economy. The sector is highly responsible for propelling India’s overall development. There is an intense focus from the Government for initiating policies that would ensure the time-bound creation of world-class infrastructure in the country. The infrastructure sector includes road, rail, air transport, shipping, and also includes energy infrastructure. In other words, the infrastructure sector acts as a catalyst for India’s economic growth as it drives the growth of the allied sectors like townships, housing, built-up infrastructure, and construction development projects.
Current Status
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- Union-State Capital Expenditure: Union capital expenditure increased by 2.2 times; states by 2.1 times between FY21-FY24.
- Connectivity Projects: GBS for Railways and NHAI rose from 36.4% (FY21) to 42.9% (FY24).
- Bank Credit: Infrastructure credit grew by 6.5% in FY24, ₹79,000 crore from March 2023-2024.
- External Borrowings: USD 9.05 billion in FY24, up from USD 5.91 billion average (FY20-FY23).
- Capital Market: Infrastructure debt, equity issuance over ₹1,00,000 crore in FY24; InvITs raised ₹1,11,294 crore (2019-2024).
Recent Government Interventions
National Investment Pipeline (NIP)
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- Investment and Coverage: NIP projects ₹111 lakh crore investment for FY20-25, with transportation (58%), energy (24%), and water & sanitation (12%) sectors leading.
- Sharing in funds: Centre (40%), States (40%) and Private Sector (20%)
- Project Overview: As of April 12, 2024, NIP includes over 9,666 projects across 37 sub-sectors, with 46% under implementation and 21% completed.
- Portal Functionality: The NIP portal centralizes tracking and investment opportunities for major infrastructure projects, aiding national and international investors.
PM GatiShakti National Master Plan (PMGS-NMP)
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- Integrated Planning: PMGS-NMP fosters multimodal and integrated infrastructure planning through onboarding of more than 16 Ministries and collaboration across State and Centre levels.
- Data and Projects: As of March 2024, 1,530 data layers are uploaded, 533 projects planned, and 149 project proposals worth ₹13.3 lakh crore evaluated.
- State Mechanisms: All 36 States and UTs have established institutional mechanisms and State Master Plan portals for coordinated infrastructure development.
National Monetisation Pipeline (NMP)
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- It was launched by Government of India in 2021
- The NMP envisages an aggregate monetisation potential of Rs 6-lakh crore through the leasing of core assets of the Central government in sectors such as roads, railways, power, oil and gas pipelines, telecom, civil aviation etc, over four-year period (2022-2025).
- Asset monetisation, based on the philosophy of Creation through Monetisation, is aimed at tapping private sector investment for new infrastructure creation. This is necessary for creating employment opportunities, thereby enabling high economic growth and seamlessly integrating the rural and semi-urban areas for overall public welfare.
- Initial Transactions: ₹2.3 lakh crore in private investments (2021-23).
- FY24 Progress: ₹1.51 lakh crore in transactions, 1.55 times FY22 levels.
