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Recasting India’s Infrastructure Ambitions
Context:
The National Infrastructure Pipeline (NIP) which was announced by Prime Minister Narendra Modi during his Independence Day speech in August 2019, is set to conclude in March 2025. It provides a five-year sector-wise investment plan for infrastructure development. With the NIP a review of its progress and future direction is essential.
Evolution and Objectives of the NIP
- A high-level task force chaired by the Secretary, Department of Economic Affairs (DEA) was formed to draft the NIP.
- The final report released by Finance Minister Nirmala Sitharaman on April 29, 2020, projected an infrastructure investment of ₹111 trillion for FY 2021-25.
- Covers greenfield and brownfield projects with an investment of over ₹100 crore each.
Assessment of NIP Performance
- As of March 2025, investment concluded on the ground stands at ₹31.1 trillion (28% of planned investment).
- 61% of projects (₹183.54 trillion) are under implementation, bringing the total capital expenditure to ₹115 trillion.
- The planned investment increased from ₹111 trillion to ₹216.89 trillion, as per the India Investment Grid Portal.
- Achievement Rate: Considering completed and ongoing projects, 103% of the original plan has been achieved.
Role of Private Investment: The National Monetisation Pipeline (NMP)
- The public sector accounts for 80% of infrastructure investment, making private financing essential.
- The NMP was launched in 2021 to generate ₹26 trillion in four years by monetising state-owned brownfield assets.
- The Economic Survey 2024-25 reports ₹13.86 trillion raised so far, mainly from roads, power, coal, and mining.
- The FY25 target is ₹1.91 trillion, and NITI Aayog will release a new five-year monetisation roadmap in August 2025.
- The Finance Minister’s Budget Speech (Feb 2025) set a ₹10 trillion monetisation target for the next phase of NMP.
Future Infrastructure Priorities
- Ports: Development of Galathea Bay (Andaman) and Vadhavan (Maharashtra).
- Airports: Expansion of major airports and greenfield projects.
- Nuclear Energy: Target to achieve 100 GW capacity.
- Renewable Energy: Investment in solar, wind, and pumped storage projects.
- Transmission & Distribution: Strengthening electricity infrastructure.
- Social Infrastructure: Healthcare, education, and housing will receive increased focus.
- Digital Infrastructure: Expansion of connectivity and data centres.
- Agricultural Investments: Enhanced focus on rural infrastructure and supply chains.
Public Infrastructure: The Backbone of Economic Growth
- Public infrastructure plays a pivotal role in economic development by enhancing connectivity, trade, and quality of life.
- India, the fifth-largest economy, has made significant strides in infrastructure development over the past decade.
- Infrastructure spending in 2023-24 reached ₹10 lakh crore, reflecting a strong commitment to growth and modernisation.
PM Gati Shakti: Integrated Infrastructure Planning
- Launched in 2021, PM Gati Shakti National Master Plan (NMP) integrates various Ministries for coordinated execution of projects.
- 44 Central Ministries and 36 States/UTs onboarded, integrating 1,614 data layers by October 2024.
- 208 big-ticket projects worth ₹15.39 lakh crore assessed under Gati Shakti.
- India’s World Bank Logistics Performance Index (LPI) rank improved from 44 (2018) to 38 (2023).
Highways and Road Connectivity
- National Highways (NH) expansion: NH network grew from 65,569 km (2004) to 1,46,145 km (2024).
- Bharatmala Pariyojana: Launched in 2017, aims to develop 26,000 km of Economic Corridors.
- PM Grameen Sadak Yojana: Roads completed increased from 1,07,370 km (2006-07) to 7,71,950 km (2024-25).
Civil Aviation Growth and UDAN Scheme
- Operational airports increased from 74 (2014) to 157 (2024).
- UDAN Scheme: 147.53 lakh passengers benefited, 619 RCS routes operational.
Shipping and Ports: Maritime Sector Growth
- Cargo handling capacity increased from 800.5 MTPA (2014) to 1,630 MTPA (2024).
- Turn Around Time (TRT) at ports reduced from 94 hours (2013-14) to 48.06 hours (2023-24).
Railways: Expansion and Electrification
- Record 3 crore passengers transported in a single day (Nov 4, 2024).
- Track electrification expanded from 33,540 km (2005-06) to 41,038 km (2014-15).
Urban Infrastructure Development
- Smart Cities Mission: 8,076 projects worth ₹1.64 lakh crore, 7,401 completed.
- Pradhan Mantri Awas Yojana – Urban (PMAY-U): Houses approved (2015-24): 118.64 lakh.
- Metro Rail Expansion: Operational network grew from 248 km (2014) to 993 km (2024).
- Jal Jeevan Mission (JJM): Tap water connections increased from 3.23 crore (2019) to 15.44 crore (2025).
Conclusion: The Way Forward
- India is at a critical inflection point in its infrastructure development journey.
- A refreshed NIP and NMP will provide a blueprint for future growth.
- Increased private sector participation, green energy investments, and social infrastructure focus will define India’s next phase of infrastructure expansion.
- Efficient implementation, monitoring, and financing mechanisms will be key to achieving these ambitious targets.
