India empowers growth through infrastructure development

India is today the world’s fastest growing major economy, and this growth has been enabled, to a significant extent, by investments in major infrastructure projects spanning highways, seaports, airports, and railways. The Government of India clearly recognises the crucial importance of infrastructure as a catalyst of all-round economic development. Capex has grown on average of 27 per cent annually over the past five years, aimed at the creation of world-class infrastructure, and the results speak for themselves.

Today, India has the third-largest domestic aviation market in the world, after the USA and China. The number of operational airports has more than doubled over the past decade and is expected to double further over the next couple of decades. The Regional Connectivity Scheme (RCS-UDAN) scheme, launched in 2016, can be credited with for much of this growth. It is improving connectivity to hitherto unserved and underserved airports in the country – which in turn is facilitating more and easier movement of people and cargo.

India’s network of national highways grew by almost 60 per cent between 2014 and 2024, guided by multiple government initiatives aimed at enhancing road connectivity and roadside infrastructure. National high-speed corridors grew by a staggering 26 times during this period. The focus, moreover, was not limited to national highways but also included rural roads, including in remote, relatively less-connected regions. The latter is important because connectivity has a direct positive correlation with economic activity.

Looking ahead, India has its sights set on 35 multimodal logistics parks under the Bharatmala Pariyojana. These parks will serve as cargo aggregation and distribution hubs for various industrial and agricultural nodes and ports – a big plus for domestic as well as export-oriented businesses.

Railways continue to be the fastest, most cost-effective, reliable mode of cargo transportation, and the most affordable means of transportation for millions of Indians. The sector has got its due share of attention, and more, over the past 5-10 years. The gross budgetary support for railways in financial year 2024-25 was more than the previous year’s and almost nine times that in 2013-14. This healthy infusion of capex has yielded excellent results, with Indian Railways achieving an all-time high freight loading last fiscal year.

We have seen the electrification of more than 94 per cent of India’s total railway network, the operationalisation of high-speed Vande Bharat trains, modernisation of more than a thousand railway stations, and the multifold expansion of metro rail network.

These fast-tracked developments across the aforesaid modes of transportation are largely owing to the conceptualisation and implementation of forward-looking programmes, such as the National Infrastructure Pipeline, the National Monetisation Pipeline, the PM GatiShakti National Master Plan, Bharatmala, Sagarmala, Dedicated Freight Corridors, BharatNet, AMRUT, Smart Cities Mission, and others.

State governments too, on their part, have expanded their capex outlays to support the build-out and modernisation of public infrastructure, with support in the form of interest-free loans facilitated by the central government. There is also a range of structured financing instruments to choose from, as well as the option of public-private partnerships, to ensure that infrastructure development sustains its momentum and its viability.

Crucially, India’s infrastructure is being developed in a manner that reaches and benefits not just the urban and commercial centres but the rural areas too. After all, socioeconomic growth only truly has meaning when it is inclusive.

One of the key considerations when initiating the implementation of such projects is addressing land reforms, which can require significant time and effort to navigate. The prevailing political stability has been a valuable factor in supporting projects with longer timelines.

Developing a comprehensive and forward-looking plan for infrastructure, coupled with a more streamlined implementation process, could further accelerate progress. Furthermore, the creation of infrastructure has a significant positive impact on productivity of almost all vital sectors, including agriculture, manufacturing, services, and tourism.

The National Institute of Public Finance and Policy (NIPFP) estimates that every rupee spent on infrastructure yields a gain of 2.5 to 3.5 rupees for India’s GDP.

Ensuring an equitable future for everyone is even more significant at a time when the country is completing 75 years as a Republic.

India, like the rest of the world, stands at a juncture from where economic growth and developmental efforts must be matched with climate action and sustainability measures. In a fast-developing country like ours, which is witnessing rapid urbanisation and digital technology adoption, it is important that infrastructure development is done in ways that minimise the embodied carbon in every new asset.

The Gati Shakti scheme has been instrumental in enhancing connectivity, but achieving truly holistic connectivity will require additional effort. Eastern corridors in India present significant potential for development, which could further improve connectivity. While new road networks are being built to global standards, there remains variation in the quality of state and national highways that could be addressed to ensure consistent infrastructure development.

By strategically prioritising infrastructure development while keeping an eye on sustainability, India is doing well in laying the foundations for sustained economic progress, social inclusivity, and global competitiveness – the touchstones of our collective vision of a Viksit Bharat, a developed economy.

An important aspect to consider is fostering a cultural shift that encourages the disciplined use and maintenance of infrastructure. By promoting awareness, responsibility, and a sense of shared ownership among citizens, it becomes possible to maximise the efficiency, longevity, and overall benefits of infrastructure projects to create a more organised and responsible approach to infrastructure utilisation.

India’s infrastructure sector is currently thriving and poised for continued growth in the coming years, significantly boosting the nation’s economy.

Through strategic investments and comprehensive development plans India will continue to accomplish remarkable advancements in transportation, connectivity, and urbanisation enhancing economic productivity, social inclusivity and sustainability.