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

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 LANDSCAPE

 India’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-global standards 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.