The Indian government has made big steps in building physical, digital, and social support over the last five years. However, the Economic Survey 2024-25 says that these works need strong help from both the public and private sectors to meet the growing needs for infrastructure in the country. The survey, shown in Parliament by Finance Minister Nirmala Sitharaman, points out that involving the private sector is key to India’s goals for long-term growth.
India’s needs for infrastructure: A decade of investment
To grow, India needs a lot of funds for infrastructure in the next ten years. While the amount needed varies, most agree that spending on infrastructure must go up to hit these goals. The survey says, “India’s growth needs require big spending in infrastructure over the next decade,” which shows the need for more funds for steady growth.
Keeping up the pace in capital spending
In FY25, capital spending went up after the elections. This shows the government’s view on the need for ongoing infrastructure work. The government plans to keep building while using smart, sustainable practices.
The survey states, “It is clear that only public funds cannot meet the needs of modernizing the country’s infrastructure for Viksit Bharat@2047.” It stresses the need to get the private sector involved better by improving their skills to plan projects and build trust in ideas about risk and profit sharing, contract handling, conflict fixes, and project finishes.
Encouraging private sector help
The government has started many plans to bring in more private-sector help. One main plan is the National Infrastructure Pipeline (NIP), which targets around Rs 111 lakh crore for infrastructure from FY20 to FY25. The NIP now has over 9,766 projects in 37 areas. The progress of these projects is tracked through the India Investment Grid (NIP-Project Monitoring Group) portal to ensure smooth work.
The government set up the National Monetization Pipeline (NMP) to bring in more private funds in August 2021. This plan was made to use brownfield assets and found a pipeline valued at Rs 6 lakh crore for FY22 to FY25. By FY24, the government went past the target of Rs 4.30 lakh crore in private funds, gaining Rs 3.86 lakh crore through asset monetisation.
Filling up gap in infrastructure needs
Even with these plans, the survey points out a big need for more infrastructure, showing challenges in a growing economy. Ongoing funds from the government, along with help from state governments and public units, are helping close this gap. Still, the survey emphasizes that to meet the needs of ‘Viksit Bharat,’ new ways to finance and more private sector help are very important.
In summary, while the government is working hard, there is still a big need for private sector work to reach India’s goals for infrastructure. As the country moves toward being developed, fixing this gap will be crucial for long-term growth and success.
