India has been spending much more than ₹ 1 trillion per annum on infrastructure. For example, the Budget Estimate of Government expenditure on Infrastructure in 2018-19 was ₹ 5.97 trillion. As per Interim Budget 2019-2020, India has a vision to become a five trillion dollar economy in the next five years and a ten trillion dollar economy in the next eight years thereafter. Infrastructure investment needs to increase commensurately to attain these targets.

Government has taken a number of initiatives to boost infrastructure investment in the economy:

1. Government has launched sectoral initiatives such as Bharatmala Pariyojana for development of the road sector, Sagarmala Programme which aims to promote port-led development with a view to reducing logistics cost for international and domestic trade, Ude Desh Ka Aam Nagrik (UDAN) - Regional Connectivity Scheme (RCS) which aims at facilitating regional air connectivity by making it affordable, Ujjawal Discom Assurance Yojana (UDAY) for effecting financial and operational turnaround of Power Distribution Companies, etc.
2. Government has also launched innovative financing vehicles such as Infrastructure Debt Funds (IDFs), Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs); mainstreaming of Public Private Partnerships (PPPs) across infrastructure sectors through viability gap funding; periodic review of Harmonized Master List of Infrastructure Sub-sectors; and establishment of the National Investment and Infrastructure Fund (NIIF).

This was stated by Shri Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs in a written reply to a question in Lok Sabha.

Infrastructure investment growth: government policy combines sectoral programmes with market financing and PPP mobilisation. To boost investment the Government has advanced a mix of sectoral development programmes and market-based financing measures. Sectoral initiatives target transport, ports, air connectivity and power distribution through named programmes. Complementary measures emphasise innovative financing vehicles and market intermediation, including promotion of Investment Trusts and Infrastructure Debt Funds, mainstreaming of Public Private Partnerships with viability gap funding, periodic sectoral classification reviews, and establishment of a national investment vehicle to mobilise long-term infrastructure capital.