Roads & Highways account for the highest share, followed by Railways and Urban Public Transport. The government has set ambitious targets for the transport sector, such as creating a 2 lakh km national highway network by 2025 and increasing airport capacity from 140 to 220. Plans also call for operationalizing 23 waterways by 2030 and building 35 Multi-Modal Logistics Parks (MMLPs). Budget allocations to infrastructure ministries increased from INR 3.7 Lakh Cr in FY23 to over INR 5 Lakh Cr by FY24, offering private investors investment opportunities across various transport subsegments.
As the transport sector looks to address sustainability challenges, private investors can seize upon an enabling policy environment to accelerate infrastructure marvel of India. Public-Private Partnerships (PPPs) have proven themselves an indispensable means for engaging the private sector across multiple infrastructure domains in India, from airports, ports, highways, and logistics parks to airports, ports, highways, and logistics parks. Beyond assistance from central government schemes and state administrations across various schemes, India requires strong support from PPPs in order to meet its goal of reaching a $5 Trillion economy by 2025.
In 2021, the government released the PM Gatishakti National Master Plan (NMP), with an emphasis on major transport sectors to strengthen multimodal connectivity infrastructure in various economic zones. This plan seeks to bring together infrastructure schemes such as Bharatmala, Sagarmala and UDAN into one plan. The NMP provides a digital platform that provides access to an extensive database of trunk and utility infrastructure projects currently ongoing or proposed by ministries/departments of both Central Government and States/UTs. Integrating GIS-enabled PM Gatishakti platform, this allows for efficient planning, designing and monitoring of next-generation infrastructure projects through one portal. According to India Investment Grid database (IIG), there are currently 15,580 projects worth $2388.93 Bn in various stages of development.
Alongside this, the National Logistics Policy addresses development of integrated infrastructure and efficiency of services through its Comprehensive Logistics Action Plan (CLAP). Together, they form a framework for creating a data-driven decision support mechanism in the country's logistics ecosystem that enhances efficiency while decreasing costs.
Major Plans for Indian Infrastructure:
- Roads: Bharatmala Pariyojana has begun Phase I with an objective of building 34,800 km of National Highways over 30 States/UTs and over 550 Districts by 2027-2028. Furthermore, 22 greenfield expressways will also be added - signifying significant advances to India's transportation Infrastructure Growth in India..
- Airports: The Ministry of Civil Aviation's flagship Regional Connectivity Scheme UDAN (Ude Desh Ka Aam Nagarik) seeks to expand regional air connectivity. First introduced in 2016, this project made flight services more accessible by developing infrastructure and air connectivity; since 2016, over one crore passengers have taken advantage of UDAN services; its first five years saw 425 routes and 58 airports being established within this scheme; budget 2023-24 has allocated INR 1,244.07 Cr for this effort, as well as plans to revive 22 airports alongside 50 additional locations such as heliports, water aerodromes or advanced landing grounds that may come online within this year alone!
- Railways: India's railway sector is undertaking ambitious projects such as the Mumbai-Ahmedabad Speed Rail Corridor, home of the world's highest pier bridge under construction, and Chenab bridge in Jammu & Kashmir - home to the world's highest railway bridge. A total Broad Gauge network of 61,508 km was electrified as of December 2023; over 354 Vande Bharat Express trains have also been introduced since then to serve up to 247 districts nationwide. Indian Railways hopes to become Net Zero Carbon Emitters by 2030 with over 311MW solar and 103MW wind power plants already commissioned as of October 2023 with 2150MW tied in renewable capacity tied in. Furthermore, 23 waterways will become operationalised before 2030.
There are various PPP projects currently underway across various industries - for instance developing Pune metro line 3, Hyderabad metro extensions and Chennai's multi modal logistics park as examples.
India must prioritize both urban and rural development to ensure overall national advancement. As of February 2024, of all 7,991 projects completed under the Smart Cities Mission, 6,753 had been successfully implemented - showing significant progress made. India has made significant advances in developing digital infrastructure, with rural areas projected to contribute significantly to new internet user growth; TransUnion CIBIL estimates that by 2025 56% of total new internet users would come from rural India, reflecting its increasing connectivity between rural and urban regions within its borders.
Conclusion
Infrastructure Growth in India plays an essential role in driving India's economic development and overall progress. Cooperation between these sectors is integral for creating resilient infrastructure that sets India up for a prosperous and sustainable future for all of its citizens.
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