ARTICLE
Written by Debashish Biswas and Sanghamitra Sanyal India aspires to become a $5 trillion economy by 2026 and a $40 trillion economy by 2047, the centenary year of its Independence. The turnaround of the Indian economy from one of the fragile five to one of the top five GDP nations has been achieved thanks to strong consumption-led demand, GST reforms and subsequent buoyancy in tax revenues, tight control over deficits and inflation , and increased public infrastructure spending. Building strong infrastructure will be the key to propelling demand and building livable ecosystems to drive the economy forward over the next decade. The past decade has witnessed infrastructure development in key sectors like roads, railways, airports, ports, energy, social infrastructure, urban infrastructure, and rural infrastructure. Government of India’s National Infrastructure Pipeline (NIP) for the period FY 2020–25, with a total estimated capital expenditure in infrastructure sectors projected at around Rs 111 lakh crore, was driven by flagship schemes such as AMRUT, Swachh Bharat Mission, Gati Shakti, Sagarmala, Bharatmala, Revamped Distribution Sector Scheme (RDSS), etc. Emphasis on the following areas has been noteworthy over the last decade. India’s growth is predicted to remain strong at about 6.5 per cent in both 2024 and 2025, and the Government of India’s commitment to creating and improving infrastructure is likely to be emphasised further in the plans of central ministries under the new government. The infrastructure-led transformation of the nation will continue under the following themes. Overall, the government may be expected to continue its infrastructure capex spending and increase its production-linked incentive (PLI) capacity investment to realise its ‘Atmanirbhar Bharat’ vision. Along with policy reforms supporting financial institutions and private investors, the NIP and schemes like Gati Shakti, Sagarmala, Bharatmala, and UDAN will play an important role in enabling India on the path to becoming a global supply hub. Improved infrastructure will lead to reduced logistics costs, aiding growth and imparting a competitive edge to the Indian economy. Debashish Biswas and Sanghamitra Sanyal are partners at Deloitte Touche Tohmatsu India LLP. None
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