Infrastructure Development in India

Introduction to Infrastructure Development in India

Infrastructure development is the backbone of India's economic progress. Over the past decade, India has achieved remarkable strides in this crucial sector.

Budget 2025-26: Key Infrastructure Initiatives

The Budget 2025-26 introduced several significant initiatives aimed at bolstering infrastructure across various sectors.

Infrastructure Financing

A major focus is on innovative financing mechanisms to fund large-scale projects.

• Under the National Monetisation Plan, assets worth Rs 10 lakh crore are targeted for monetisation over the next five years (2025-30).
• The government will provide certainty in the taxation of Alternative Investment Funds (AIFs) specifically for infrastructure projects, encouraging private investment.
• States are encouraged to propose projects for funding through India Infrastructure Project Development Fund (IIPDF) loans.

Urban Development Initiatives

To address the challenges and opportunities in urban areas, new funds and strategies are being implemented.

• An Urban Challenge Fund of Rs 1 lakh crore will be established.
• This fund aims to implement proposals focused on 'cities as growth hubs', 'creative redevelopment of cities', and 'smart urbanisation'.

Railways Sector Enhancements

The Indian Railways is set for significant upgrades and expansion.

• India aims to become the 2nd-largest cargo-carrying railway globally, after China.
• There is a push towards producing indigenous high-speed ‘bullet’ trains.
• The Indian Railways is on track to achieve 100% electrification of its network by FY 2025-26.

Shipbuilding Industry Support

Measures are being introduced to boost the domestic shipbuilding sector.

• A fund of Rs 25,000 crore will be established to support the maritime industry, promoting competition and long-term financing.
• Large ships will be granted infrastructure status, which can reduce financial costs by up to 10 percentage points.

• Credit notes will be introduced for shipbuilding in Indian yards to foster a circular economy.

Aviation Sector Expansion

The civil aviation sector continues its growth trajectory with renewed schemes.

• The UDAN scheme has been extended for another 10 years.
• A revamped UDAN scheme aims to connect 120 new destinations, serving an additional 40 million passengers.
• New greenfield airports in Bihar will complement the expansions of Patna and Bihta (in Patna) airports.

Housing Sector Acceleration

Efforts are underway to complete pending housing projects.

• SWAMIH Fund 2, with a corpus of Rs 15,000 crore, will be set up.
• This fund, with contributions from the government, banks, and private investors, aims to speed up the completion of 1 lakh incomplete housing units.

Local Economy Empowerment

Support for street vendors and small businesses is being enhanced.

• The PM-SVANidhi scheme will be revamped to provide enhanced loans from banks.
• It will also introduce UPI-linked credit cards with a limit of Rs 30,000 for beneficiaries.

Current Status of Infrastructure Development in India

India has made significant progress across various infrastructure sectors, demonstrating robust growth.

Highways and Roads

India boasts one of the largest road networks globally, with continuous expansion.

• India possesses the 2nd-largest road network globally, surpassed only by the United States.
• The length of National Highways (NH) stood at 1,46,145 km in 2024.
• Operational high-speed corridors have expanded to 2,138 km in 2024.

Railways Electrification and Modernisation

Indian Railways continues its electrification drive and modernisation efforts.

• As of December 2023, 93.83% of the broad-gauge tracks were electrified. This is a substantial increase from 21,801 km in 2014.

• The provision of Bio-toilets in coaches has reached 80,478 coaches between 2014 and 2023, enhancing sanitation.

Civil Aviation Growth

India's civil aviation market has seen rapid expansion, becoming a global leader.

• India is now the 3rd-largest domestic aviation market globally.
• The number of operational airports has increased from 74 in 2014 to 157 in 2024.
• Under the Regional Connectivity Scheme (RCS) - UDAN, approximately 147 lakh passengers had benefited as of December 2024.