Investment and Infrastructure: Keeping it Going | Current Affairs | Vision IAS
Economic Survey Logo

Table of Content

    Investment and Infrastructure: Keeping it Going

    Posted 01 Feb 2025

    Updated 04 Feb 2025

    5 min read

    Introduction

    • Central focus of the Government in last five years was on increasing public spending on infrastructure- physical, digital and social, and speeding up approvals and resource mobilization.
    • Union Government's capital expenditure on key infrastructure sectors has grown at a rate of 38.8% from FY20 to FY24.

    Developments across Infrastructure Sectors

    Physical Infrastructure

    Railway Sector

    Current Status

    • Between April- October 2024, 17 new pairs of Vande Bharat trains introduced to the network.
    • 91 Gati shakti multi-modal Cargo Terminal commissioned.
    • Indian Railways targets 30 GW of renewable energy by 2029-30.

    Key Initiatives 

    • Automatic Block Signalling: Installed to enhance capacity on high-density routes.
    • Mumbai-Ahmedabad High-Speed Rail Project: Sanctioned in 2015, this 508 km project was supported by Japan.

    Road Sector

    Current Status

    • India has a total road network of 63.4 lakh km, including National highway (NH) network of 146,195 km. NH carries about 40% of the overall road freight traffic.
    • 5853 km of NH was constructed in FY25.

    Key Initiatives

    • Bharatmala Pariyojana: Launched in 2017, it aims to develop 34,800 km of NH. 
      • By 2024, approximately 76% of the projects (26,425 km) has been awarded, and 18,926 km have been constructed.
    • Multi-Modal Logistics Parks (MMLP): Till December 2024, Six MMLPs in Chennai, Indore, Nagpur, Jalna, Jogighopa and Bangalore have been awarded.

    Civil Aviation Sector

    Current Status

    • Airport's cargo handling capacity has been gradually increasing, reaching 8.0 million MT in FY24.

    Key Initiatives

    • UDAN scheme: 619 routes connecting 88 airports, including two water aerodromes and 13 heliports, have been operationalised so far.

    Ports, Shipping and Inland Waterways Sector

    Current Status

    • Improvements in operational efficiency and reduction in average container turnaround time in major ports (48.1 hours in FY24 to 30.4 hours during FY25 (Apr-Nov)).
    • Progress under Sagarmala programme highlights the highest project completion rates in port modernisation and port-led industrialisation.

    Key Initiatives

    • Chabahar Port and INSTC: Shahid Beheshti Port at Chabahar connects Mumbai to Eurasia via INSTC.
      • Harit nauka Guidelines: Launched in 2024, it aims to green 1,000 inland vessels over next ten years.
    • It reduces transport costs and time, leading to a 43% increase in vessel traffic and 34% rise in container traffic for FY24.

    Energy Infrastructure

    Power Sector

    Current Status

    • Installed capacity rising by 7.2% year-on-year (YoY) to 456.7 GW as of November 2024.
    • Share of renewable energy in India's total installed capacity now stands at 47%.
    • Total renewable energy installed capacity increased by 15.8% YoY, reaching 209.4 GW, up from 180.8 GW in December 2023.

    Key Initiatives

    • Revamped Distribution Sector Scheme, Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA), etc.

    Digital Infrastructure

    Telecommunication Sector

    Current Status

    • By October 31, 2024, 5G services were launched in all states and union territories. 

    Key Initiatives

    • Bharat Net Project to connect all Gram Panchayats and villages with broadband.

    Information Technology Sector

    Current Status

    • As of November 2024, National Informatics Centre supports 1,917 applications on its cloud, under MeghRaj, GI Cloud initiative.
      • MeghRaj aimed at delivering ICT services via cloud computing to Central and State/UT Departments.
    • Data centre market in India is expected to grow from US$4.5 billion in 2023 to US$11.6 billion by 2032

    Rural and Urban Infrastructure

    Rural Drinking Water and Sanitation Sector

    Status and Initiatives 

    • Jal Jeevan Mission (2019): Over 12 crore families have gained access of piped drinking water since 2019.
      • States achieved 100% coverage:  Arunachal Pradesh, Goa, Haryana, Himachal Pradesh, Gujarat, Punjab, Telangana and Mizoram.
      • UTs achieved 100% coverage: Andaman & Nicobar Islands, Dadra Nagar Haveli & Daman Diu and Puducherry.
    • Swachh Bharat Mission Phase II – Grameen (SBM-G): During April-November 2024, 1.92 lakh villages were incrementally declared ODF+ under model category, taking the total number of ODF+ villages to 3.64 lakh.

    Urban Sector

    Status and Initiatives

    • Pradhan Mantri Awas Yojana- Urban (2015): Completed over 89 lakh houses in urban areas.
    • Urban transport: Growing with metro and rapid rail systems operational or under construction in 29 cities, with 1010 km currently operational in 23 cities.
    • Atal Mission for Rejuvenation and Urban Transformation (AMRUT) Scheme: Under it, tap water coverage has increased to 70%, and sewerage coverage has risen to 62%.

    Strategic Infrastructure

    Tourism Sector

    Status and Initiatives 

    • Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASHAD): To develop tourism infrastructure at identified pilgrimage destinations and heritage cities.
    • Swadesh Darshan Scheme 2.0 (2022): To develop sustainable and responsible tourism destinations. As of December 2024, 75 out of 76 projects have been completed.
    • As of December 2024, 26 out of 48 projects have been completed.

     

    Space Sector

    Status and Initiatives

    • India currently operates 56 active space assets including 19 communication satellites, 9 navigation satellites, 4 scientific satellites, and 24 earth observation satellites.
    • Government's Space Vision 2047 includes four projects i.e. 
      • Gaganyaan follow on mission for establishment of first module of Bhartiya Antariksh Station.
      • Chandrayaan-4 Lunar Sample Return Mission and Venus Orbiter Mission.
    • Development of Next Generation Launch Vehicle.

    Ways to enhance infrastructure investment to sustain high rate of growth

    • Transport Modernisation: Accelerating efforts to build integrated multi-modal transport, coupled with modernisation of existing physical assets will improve efficiency and last-mile connectivity.
    • Private Participation: It should accelerate in critical infrastructure sectors in ways like programme and project planning, financing, construction, maintenance, monetisation and impact assessment.

    One-Line Summary

    India's infrastructure investment remains a key growth driver, focusing on connectivity, energy transition, and digital transformation, but land reforms, financing sustainability, and execution speed need further policy attention.

    Relevance for UPSC

    • Infrastructure & Economic Growth (GS-3: Indian Economy, Public Investment). 
    • Government Schemes for Housing, Water & Urban Development (GS-2: Governance, GS-3: Economy). 
    • Energy Security & Renewable Energy Expansion (GS-3: Environment & Economy). 
    • Investment & Public-Private Partnerships (GS-3: Economic Development).

     

    • Tags :
    • Investment
    • Infrastructure
    • Digital Infrastructure
    • physical infrastructure
    • Energy infrastructure
    • rural infrastructure
    • urban infrastructure
    Subscribe for Premium Features