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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
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