**Executive Summary**
The Economic Survey 2025-26, tabled in Parliament by the Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman, highlights India's infrastructure growth strategy, showcasing progress in various sectors. Key takeaways include substantial increases in public capital expenditure, expansion of national highways and railway infrastructure, growth in the civil aviation sector, and progress in ports and shipping. The survey also notes the increasing role of private investment and diversification in infrastructure financing.
**Key Points / Main Content**
* **Infrastructure Investment and Growth:**
* India ranked among the top five countries in terms of private investment in infrastructure among low- and middle-income economies, as per the World Bank.
* Public capital expenditure has increased nearly 4.2 times, from ₹2.63 lakh crore in FY18 to ₹11.21 lakh crore in FY26 (BE).
* Effective capital expenditure in FY26 (BE) is ₹15.48 lakh crore.
* **Roadways and Highways:**
* The NH network has grown by about 60%, from 91,287 km (FY14) to 1,46,572 km (FY26, up to December).
* Operational High-Speed Corridors increased nearly tenfold from 550 km (FY14) to 5,364 km (FY26, up to December).
* **Railway Infrastructure:**
* The rail network reached 69,439 route km as of March 2025, with a targeted addition of 3,500 km in FY26.
* 99.1% electrification has been achieved by October 2025.
* Amrit Bharat Station Scheme aims to redevelop 1337 stations.
* **Civil Aviation:**
* India is the world's 3rd largest domestic aviation market.
* The number of airports increased from 74 in 2014 to 164 in 2025.
* Indian airports handled 412 million passengers in FY25 and projected to increase to 665 million by FY31.
* **Ports and Shipping:**
* Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047 are driving port infrastructure upgrades.
* Seven ports now feature among the top 100 in the World Bank's Container Port Performance Index 2024.
* 32 National Waterways are operational, spanning 5155 Km as of November 2025.
* **Energy Sector:**
* Installed power capacity rose 11.6% (y-o-y) to 509.74 GW as of November 2025.
* Renewable energy constitutes around 49.83% of total power generation capacity as of November 2025.
* India ranks third globally in overall RE and installed solar capacity.
**Impact Analysis**
**Government of India**
*Impact:* The Economic Survey 2025-26 positions infrastructure as a key growth driver, highlighting the strong multiplier effects of infrastructure on the economy. It shows the success of initiatives such as PM GatiShakti, National Logistics Policy and digital platforms.
*Action Required:* Continue implementing and refining policies to sustain infrastructure growth, attract private investment, and achieve sector-specific targets (e.g., renewable energy goals).
**Private Investors**
*Impact:* The survey highlights increasing opportunities for private investment in infrastructure, particularly through PPPs, InvITs and REITs. It shows India as the largest recipient of PPI investment in South Asia, indicating strong global standing.
*Action Required:* Explore investment opportunities in various infrastructure sectors, leveraging government policies and incentives.
**Infrastructure Developers/Construction Companies**
*Impact:* The survey highlights the expansion of infrastructure projects across various sectors, which could drive the growth in the developers/construction market.
*Action Required:* Look for new projects, leverage government policies and digital innovations to lower costs, and improve logistics.
**Citizens/General Public**
*Impact:* The survey aims to help improve logistics performance, wider access to essential services, and faster freight movement.
*Action Required:* None, as impacted only.
Key Entities Referenced
Economic Survey: A document referenced throughout the text to support claims regarding infrastructure development and economic growth in India.
PM GatiShakti: A national master plan for multimodal connectivity infrastructure aiming to institutionalize multimodal planning and reduce transaction costs.
Ministry of Finance: The issuing ministry, overseeing policies related to infrastructure and economic development.
Merchant Shipping Act 2025: Recent legislative reforms in ports and shipping sector.
RCS-UDAN: A key policy initiative that drives growth in civil aviation.
Ministry of Finance
WORLD BANK RANKS INDIA AMONG THE TOP
FIVE COUNTRIES IN TERMS OF PRIVATE
INVESTMENT IN INFRASTRUCTURE AMONG
LOW- AND MIDDLE-INCOME ECONOMIES
HIGH-SPEED CORRIDORS INCREASED NEARLY TEN-FOLD-
FROM 550 KM (FY14) TO 5,364 KM (FY26, UP TO
DECEMBER)
INDIA IS THE WORLD’S 3RDLARGEST DOMESTIC AVIATION
MARKET, WITH THE NUMBER OF AIRPORTS INCREASING
FROM 74 IN 2014 TO 164 IN 2025
WITH BETTER TURNAROUND TIME, 7 PORTS FEATURE
AMONG THE TOP 100 IN WORLD BANK’S INDEX 2024
INDIA RANKS 3RD IN OVERALL RENEWABLE ENERGY AND
INSTALLED SOLAR CAPACITY
प्रव तथ: 29 JAN 2026 2:10PM by PIB Delhi
Infrastructure continues to be central to India’s growth strategy, with public capital expenditure following
a sustained upward trajectory since FY15, and a defining feature of this transition has been the
institutionalization of multimodal planning through PM GatiShakti, complemented by the National
Logistics Policy and digital platforms that are reducing transaction costs and execution risks, said the
Economic Survey 2025-26 tabled in the Parliament today by Union Minister for Finance and Corporate
Affairs Smt. Nirmala Sitharaman.
SUBSTANTIAL INCREASE IN PUBLIC CAPITAL EXPENDITURE
A major element of this shift has been the substantial increase in public capital expenditure. The
Government of India’s capital expenditure has increased nearly 4.2 times, from ₹2.63 lakh crore in FY18
to ₹11.21 lakh crore in FY26 (BE), while effective capital expenditure in FY26 (BE) is ₹15.48 lakh crore,
positioning infrastructure as a key growth driver, recognizing the strong multiplier effects that
infrastructure generates on the economy, said the Economic Survey 2025-26.
CHANGING INDIA’S INFRASTRUCTURE FINANCING LANDSCAPEIndia’s infrastructure financing landscape is undergoing a change and is increasingly diversifying beyond
bank credit, with NBFC credit to the commercial sector growing at a CAGR of 43.3% during FY20–
FY25, alongside a growing role of Infrastructure Investment Trusts (InvITs) and Real Estate Investment
Trusts (REITs) in mobilising long-term institutional capital, says the Survey 2025-26.
PUBLIC PRIVATE PARTNERSHIP
The Economic Survey 2025-26 stated that 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 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
marked increase in project approvals by Public-Private Partnership Appraisal Committee (PPPAC).
CORE PHYSICAL INFRASTRUCTURE
NATIONAL HIGHWAY:
The infrastructure has expanded substantially, with the NH network growing by about 60 per cent from
91,287 km (FY14) to 1,46,572 km (FY26, up to December), and operational High-Speed Corridors
increasing nearly ten-fold—from 550 km (FY14) to 5,364 km (FY26, up to December). The Key
initiatives and reforms in the Roadways and Highways Sector includes High-Speed Corridor
Development, Economic Node Connectivity and Urban Decongestion [A new policy for access-
controlled ring roads and bypasses has been finalised for cities with populations over 1 lakh], said the
Economic Survey 2025-26.
RAILWAY INFRASTRUCTURE:
The Economic Survey 2025-26 stated that the Railway infrastructure has continued to expand, with the
rail network reaching 69,439 route km as of March 2025, a targeted addition of 3,500 km in FY26, and
99.1 per cent electrification has been achieved by October 2025. A defining feature of the recent years has
been the record capital expenditure on railway infrastructure, with a focus on new lines, doubling and
multi-tracking, rolling stock augmentation, signaling and safety related works. The Key infrastructure
initiatives in the railway sector includes Economic Railway Corridors (Three corridor programs – Energy,
Mineral & Cement; Port Connectivity; and High Traffic Density routes), Mumbai-Ahmedabad High Speed
Rail, Dedicated Freight Corridors, Station Redevelopment [Amrit Bharat Station Scheme – 1337 stations
are being redeveloped], Safety & Technology Upgradation [Kavach – Advance Train protection System],
Track upgradation [more than 78 percent of track has been upgraded for sectional speed of 110 kmph and
above] and PPPs.
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. In FY25, Indian airports handled 412 million passengers and
the same is projected to increase to 665 million by FY31. Further, air cargo volume grew from 2.53 MMT
in FY15 to 3.72 MMT in FY25. This growth is driven by several key policy initiatives and reforms like
RCS-UDAN, Greenfield Airport Policy, Airport Modernization & Capacity Expansion, Digital &
Technological Initiatives [Digi Yatra, Liberalised drone regulations] and legislative reforms like The
Bharatiya Vayuyan Vidheyak 2024 & The protection of Interests in Aircraft Objects Act 2025, said the
Economic Survey 2025-26.
PORTS AND SHIPPING:
Under Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047, substantial progress has been
made in upgrading port infrastructure, enhancing regulatory frameworks, improving operational efficiency
and increasing private sector participation. The result is the Indian ports have achieved near-globalstandards in average container vessel turnaround time, with seven ports now featuring among the top 100
in the World Bank’s Container Port Performance Index 2024. The recent legislative reforms in ports and
shipping sector includes Merchant Shipping Act 2025, Coastal Shipping Act 2025, Indian Ports Act 2025,
Bills of Lading Act 2025 and Carriage of Goods by Sea Act 2025.
The country has made substantial progress in Inland water Transport. As of November 2025, 32 National
Waterways are operational spanning 5155 Km, with cargo operations on 29 NWs, cruise operations on 15
NWs and passenger services on 23 NWs; 11 NWs supporting all three modes reflecting strong multimodal
integration. Cargo movement through Inland Water Transport (IWT) rose significantly from 18 MMT in
2013-14 to 146 MMT in 2024-25.
In the shipbuilding sector, a comprehensive package of ₹69,725 crore was approved in September 2025 to
revitalize the country’s shipbuilding and maritime ecosystem. The initiative adopts a four pillar approach
aimed at developing a globally competitive, technologically advanced and sustainable maritime sector,
said the Economic Survey 2025-26.
ENERGY SECTOR
POWER: The power sector recorded sustained capacity expansion, with installed capacity rising 11.6 per
cent (y-o-y) to 509.74 GW as of November 2025. The Government of India implemented multiple
initiatives aimed at supporting States/distribution utilities for providing uninterrupted power supply to
every household. Under DDUGJY, the Integrated Power Development Scheme (IPDS) and PM
SAUBHAGYA, about 1.85 lakh crore rupees has been invested to boost the distribution infrastructure.
Wherein 18,374 villages were electrified under DDUGJY and 2.86 crore households have gained
electricity during the SAUBHAGYA period. The result is the demand–supply gap declined from 4.2 per
cent in FY14 to nil by November 2025.
To further support States to improve financial sustainability and operational efficiency of distribution
utilities, the Revamped Distribution Sector Scheme was launched in 2021 with an outlay of ₹3.03 lakh
crore, as a result of this and several other initiatives the power sector reforms delivered a historic
turnaround, with DISCOMs recording a positive Profit after Tax (PAT) of ₹2,701 crore in FY25 for the
first time, alongside a reduction in AT&C losses from 22.62 per cent (FY14) to 15.04 per cent (FY25). To
further strengthen distribution sector the Government has proposed the Electricity (Amendment) Bill,
2026 with the objective of enhancing efficiency, competition, and financial discipline in the power sector,
says the Economic Survey 2025-26.
RENEWABLE ENERGY: India’s energy landscape is undergoing a structural transformation, with
renewable energy now constituting around 49.83 per cent of total power generation capacity as of
November 2025, with India ranking third globally in overall RE and installed solar capacity & fourth in
installed wind capacity. The total renewable energy capacity witnessing a more than threefold increase
over the last decade, surging from 76.38 GW in March 2014 to 253.96 GW by November 2025, says the
Economic Survey 2025-26.
The Economic Survey concludes that India’s infrastructure strategy over the recent years reflects a
decisive shift towards scale, integration and quality, with sustained public capital expenditure acting as a
powerful catalyst for growth. Coordinated investments across roads, railways, ports, civil aviation, energy,
digital and rural infrastructure have begun to yield tangible efficiency gains—shorter travel times, faster
freight movement, improved logistics performance and wider access to essential services. The
institutionalization of integrated planning through PM GatiShakti, alongside reforms in financing, asset
monetization and public–private partnerships, has strengthened project preparation and execution while
crowding-in private investment.
****NB/Pawan Singh Faujdar
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