Intro: Sustained public investment, integrated planning and deeper capital markets position infrastructure as a key growth multiplier, even as execution risks remain.
New Delhi
India’s infrastructure-led growth strategy continues to gain momentum, with the country ranked among the top five globally for private investment in infrastructure among low- and middle-income economies, according to the Economic Survey 2025-26 tabled on Thursday.
Citing rankings by the World Bank, the Survey underlined that infrastructure development remains central to India’s long-term economic expansion.
The Survey noted that sustained growth in public capital expenditure since FY15 has played a critical role in strengthening the country’s infrastructure base.
This progress has been supported by the institutionalisation of multimodal planning through PM GatiShakti, along with complementary reforms such as the National Logistics Policy and the use of digital platforms. These measures have helped reduce transaction costs, improve coordination among ministries, and minimise execution risks in large infrastructure projects.
According to the Survey, capital expenditure has increased nearly 4.2 times over the past eight years, rising from Rs 2.63 lakh crore in FY18 to Rs 11.21 lakh crore in FY26 (Budget Estimates). In addition, effective capital expenditure for FY26 (BE) has been pegged at Rs 15.48 lakh crore. The government has positioned infrastructure as a key growth driver, recognising its strong multiplier effects on employment, productivity, and overall economic activity.
The Survey also highlighted a structural shift in infrastructure financing. India’s financing landscape is increasingly diversifying beyond traditional bank credit, with non-banking financial companies (NBFCs) playing a larger role. NBFC credit to the commercial sector recorded a compound annual growth rate of 43.3% during FY20–FY25, reflecting growing depth and resilience in infrastructure funding sources.
Significant progress has been reported in the transport sector. The National Highway network expanded by around 60%, from 91,287 kilometres in FY14 to 1,46,572 kilometres by FY26 (up to December). Operational high-speed corridors witnessed a nearly ten-fold increase, from 550 kilometres in FY14 to 5,364 kilometres in FY26 (up to December). Railway infrastructure has also seen notable advances.
Key infra developments (FY26):
* Massive capex: Total capital outlay is budgeted at ₹11.21 lakh crore for FY26, with an effective capex of ₹15.48 lakh crore, driving high multiplier effects for GDP.
* Transportation expansion: National highways increased by 60% from 91,287 km (FY14) to 1,46,572 km (FY26), while operational High-Speed Corridors grew nearly ten-fold to 5,364 km.
* Railway & aviation growth: Rail networks reached 69,439 route km with 99.1% electrification by Oct 2025. The aviation market boasts 164 airports, up from 74 in 2014.
* Power & energy: Installed capacity reached 509.74 GW by Nov 2025, with the demand-supply gap dropping to zero.
* Private sector role: Increased private investment is evident, with ₹2.1 trillion in equity capital deployed in infrastructure over the last two years.
* Strategic focus: The PM GatiShakti framework and National Logistics Policy are accelerating project execution, while the focus shifts to digital public infrastructure (DPI) and sustainability.
