Lucknow: The World Bank has ranked India among the top five countries globally for private investment in infrastructure among low- and middle-income economies, highlighting the country’s rapid transformation driven by sustained public spending, policy reforms, and public-private partnerships.
Presenting the Economic Survey 2025–26 in Parliament, Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman stated that infrastructure continues to remain at the core of India’s development strategy. Since FY2015, public capital expenditure has recorded consistent growth, largely driven by the institutionalisation of multimodal planning through PM Gati Shakti, along with the National Logistics Policy and digital platforms that have reduced logistics costs and risks.
Surge in Public Capital Expenditure
According to the Economic Survey, government capital expenditure has increased nearly 4.2 times, rising from ₹2.63 lakh crore in FY2018 to ₹11.21 lakh crore in FY2026 (Budget Estimates). The effective capital expenditure for FY2026 is estimated at ₹15.48 lakh crore, with infrastructure emerging as the primary growth driver in preparing the economy for future demands.
Evolving Infrastructure Financing Landscape
India’s infrastructure financing ecosystem is witnessing a structural shift from traditional bank-led lending to diversified sources. Between FY2020 and FY2025, NBFC lending to the commercial sector grew at a compound annual growth rate of 43.3 per cent. The role of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) has also expanded significantly in mobilising long-term institutional capital.
Public-Private Partnership Leadership
The Economic Survey notes that India accounts for nearly 90 per cent of South Asia’s private infrastructure investment, positioning it as the regional leader in Public-Private Infrastructure (PPI) projects. This global recognition is reflected in the growing number of projects approved by the Public-Private Partnership Appraisal Committee (PPP-AC).
Expansion of Core Physical Infrastructure
India’s national highway network has expanded by 60 per cent, increasing from 91,287 km in FY2014 to 1,46,572 km by December 2025. Operational high-speed corridors have grown nearly tenfold, from 550 km in FY2014 to 5,364 km by December 2025. Key initiatives include high-speed corridors, economic node connectivity, ring roads, and bypasses in cities with populations exceeding one lakh.
Railways: Rapid Modernisation
Rail infrastructure has continued to expand steadily, with the rail network reaching 69,439 km by March 2025. Nearly 99.1 per cent electrification was completed by October 2025, while 3,500 km of additional rail network expansion is targeted in FY2026. Major initiatives include Dedicated Freight Corridors, Economic Rail Corridors, Mumbai–Ahmedabad High-Speed Rail, station redevelopment under the Amrit Bharat Station Scheme, and advanced safety systems such as KAVACH.
Civil Aviation Growth
India has emerged as the world’s third-largest domestic aviation market. The number of airports increased from 74 in FY2014 to 164 in FY2025. Passenger traffic reached 412 million in FY2025 and is projected to rise to 665 million by FY2031. Cargo traffic grew from 2.53 MMT in FY2015 to 3.72 MMT in FY2025, supported by initiatives such as UDAN, greenfield airport policy, airport modernisation, Digi Yatra, and a liberal drone policy.
Ports, Shipping and Inland Waterways
Under Maritime India Vision 2030 and Amrit Kaal Vision 2047, India has significantly improved port efficiency and private sector participation. Seven Indian ports now feature among the World Bank’s Container Port Performance Index 2024 Top 100, with vessel turnaround times approaching global best standards.
Inland water transport has also seen remarkable growth, with 32 national waterways spanning 5,155 km operational by November 2025. Cargo movement via inland waterways increased from 18 MMT in FY2013–14 to 146 MMT in FY2024–25.
Energy Sector Transformation
India’s installed power capacity rose to 509.74 GW by November 2025, with renewable energy accounting for nearly 49.83 per cent of total capacity. India ranks third globally in total renewable and solar energy capacity and fourth in wind energy. Renewable energy capacity has more than tripled over the past decade, growing from 76.38 GW in March 2014 to 253.96 GW in November 2025.
The Economic Survey highlights that coordinated investments across roads, railways, ports, aviation, energy, digital, and rural infrastructure—supported by financial reforms, asset monetisation, and public-private partnerships—have reduced travel time, enhanced logistics efficiency, and improved access to essential services across the country.
