Infrastructure continues to remain central to India’s growth strategy, supported by a sustained increase in public capital expenditure since FY 2014-15. A defining feature of this phase has been the institutionalisation of multimodal planning through PM GatiShakti, complemented by the National Logistics Policy and digital platforms that are lowering transaction costs and execution risks, according to the Economic Survey 2025-26 tabled in Parliament by Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman.
Sharp Rise in Public Capital Expenditure
A key driver of India’s infrastructure push has been the sharp increase in public capital expenditure. The Government of India’s capital outlay has risen nearly 4.2 times, from ₹2.63 lakh crore in FY 2017-18 to ₹11.21 lakh crore in FY 2025-26 (BE). Effective capital expenditure in FY 2025-26 (BE) is estimated at ₹15.48 lakh crore, underscoring infrastructure’s role as a critical growth catalyst due to its strong multiplier effects across the economy.
Evolving Infrastructure Financing Landscape
India’s infrastructure financing ecosystem is undergoing a structural transformation, with growing diversification beyond traditional bank lending. Credit from NBFCs to the commercial sector grew at a CAGR of 43.3 per cent during FY 2019-20 ~ 2024-25, while Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) are increasingly mobilising long-term institutional capital, the Survey notes.
Public-Private Partnerships Gain Strength
The Economic Survey highlights that the World Bank ranks India among the top five countries globally in terms of private investment in infrastructure among low- and middle-income economies. India also emerged as the largest recipient of private participation in infrastructure (PPI) investment in South Asia, accounting for over 90 per cent of the region’s total private infrastructure investment. This strong global standing is reflected domestically in the rising number of project approvals by the Public-Private Partnership Appraisal Committee (PPPAC).
Expansion Across Core Physical Infrastructure
National Highways
India’s National Highway network expanded by nearly 60 per cent, from 91,287 km in FY 2013-14 to 1,46,572 km in FY 2025-26 (up to December). Operational high-speed corridors increased almost ten-fold, from 550 km in FY 2013-14 to 5,364 km in FY 2025-26 (up to December). Key initiatives include high-speed corridor development, economic node connectivity, and a new policy for access-controlled ring roads and bypasses for cities with populations above one lakh.
Railways
Railway infrastructure continued to expand, with the rail network reaching 69,439 route km as of March 2025, a targeted addition of 3,500 km in FY 2025-26, and 99.1 per cent electrification achieved by October 2025. Record capital expenditure has focused on new lines, doubling and multi-tracking, rolling stock augmentation, signalling, and safety. Major initiatives include Economic Railway Corridors, Dedicated Freight Corridors, Mumbai–Ahmedabad High-Speed Rail, Amrit Bharat Station Scheme (1,337 stations), Kavach train protection system, track upgrades, and PPP-led projects.
Civil Aviation
India has emerged as the world’s third-largest domestic aviation market, with the number of airports increasing from 74 in 2014 to 164 in 2025. Passenger traffic reached 412 million in FY 2024-25 and is projected to rise to 665 million by FY 2030-31. Air cargo volumes grew from 2.53 MMT in FY 2014-15 to 3.72 MMT in FY 2024-25. Growth has been supported by initiatives such as RCS-UDAN, greenfield airport policy, airport modernisation, Digi Yatra, liberalised drone regulations, and key legislative reforms including the Bharatiya Vayuyan Vidheyak, 2024 and the Protection of Interests in Aircraft Objects Act, 2025.
Ports, Shipping and Inland Waterways
Under Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047, substantial progress has been made in upgrading port infrastructure, improving regulatory frameworks, and enhancing operational efficiency. As a result, seven Indian ports feature among the top 100 globally in the World Bank’s Container Port Performance Index 2024. Inland Water Transport has expanded rapidly, with 32 operational National Waterways spanning 5,155 km and cargo movement increasing from 18 MMT in 2013-14 to 146 MMT in 2024-25. A comprehensive ₹69,725 crore shipbuilding package, approved in September 2025, aims to revitalise India’s shipbuilding and maritime ecosystem.
Energy Sector Transformation
Power
Installed power capacity increased 11.6 per cent year-on-year to 509.74 GW as of November 2025. Distribution infrastructure has been strengthened through DDUGJY, IPDS, and PM SAUBHAGYA, with investments of about ₹1.85 lakh crore, electrifying 18,374 villages and connecting 2.86 crore households. The demand-supply gap declined from 4.2 per cent in FY 2013-14 to zero by November 2025. Power sector reforms delivered a historic turnaround, with DISCOMs recording a positive profit after tax of ₹2,701 crore in FY 2024-25 for the first time. The proposed Electricity (Amendment) Bill, 2026 aims to further improve efficiency, competition, and financial discipline.
Renewable Energy
India’s energy mix is undergoing a structural shift, with renewable energy accounting for about 49.83 per cent of total installed power capacity as of November 2025. India ranks third globally in overall renewable energy and installed solar capacity, and fourth in installed wind capacity. Total renewable capacity has more than tripled over the past decade, rising from 76.38 GW in March 2014 to 253.96 GW in November 2025.
Conclusion
The Economic Survey concludes that India’s infrastructure strategy reflects a decisive shift towards scale, integration, and quality, with sustained public capital expenditure acting as a powerful growth catalyst. Coordinated investments across roads, railways, ports, civil aviation, energy, and inland waterways, anchored by PM GatiShakti, financing reforms, asset monetisation, and public-private partnerships, are delivering tangible efficiency gains, faster logistics, and broader access to essential services while crowding in private investment. (Source: PIB PR ID 2219991)
Economic Survey of India 2025-26 dated 29/01/2026