05-February-2025-Editorial

INDIA’S INFRASTRUCTURE DEVELOPMENT

Infrastructure is the backbone of a nation’s economic growth. In the past decade, India has made remarkable progress in building roads, railways, airports, and urban facilities. The government’s increased investment in infrastructure is driving development, improving connectivity, and boosting economic activities.

Key Announcements in Budget 2025-26

Infrastructure Financing

• Rs 10 lakh crore worth of assets to be monetized in the next five years under the National Monetisation Plan.
• Urban Challenge Fund of Rs 1 lakh crore to promote cities as economic hubs, creative redevelopment, and better sanitation facilities.
• Alternative Investment Funds (AIFs) for infrastructure will get tax certainty.
• States can propose projects under India Infrastructure Project Development Fund (IIPDF).

Railways

• India aims to become the world’s second-largest railway cargo carrier after China.
• Complete 100% electrification of railway networks by 2025-26.
• Development of indigenous bullet trains

Shipping and Ports

• Rs 25,000 crore fund to promote shipbuilding and long-term financing.
• Large ships granted infrastructure status to lower financial costs.
• Credit notes for shipbreaking to encourage recycling and circular economy.

Aviation

• UDAN scheme extended for 10 years, adding 120 new destinations and serving 40 million additional passengers.
• New greenfield airports in Bihar to support regional connectivity.

Housing and Local Economy

• SWAMIH Fund 2 of Rs 15,000 crore to complete 1 lakh unfinished housing units.
• PM SVANidhi scheme revamped for enhanced loans and UPI-linked credit cards with a Rs 30,000 limit for small vendors.

Current Status of Infrastructure in India

Roads and Highways

• India has the second-largest road network globally after the USA.
• National highways expanded to 1,46,145 km by 2024.
• Construction pace increased from 1 km/day in 2014-15 to 33.8 km/day in 2023-24.
• Capital expenditure for roads rose 7 times between 2013-24.

Railways

• 83% of broad-gauge tracks electrified by December 2023 (up from 21,801 km in 2014).
• 80,478 railway coaches now have bio-toilets.

Aviation

• India is the third-largest domestic aviation market in the world.
• Operational airports increased from 74 (2014) to 157 (2024).
• Under UDAN scheme, 147 lakh passengers benefited as of December 2024.

Shipping and Ports

• India has 12 major and 217 minor/intermediate ports.
• Cargo handling capacity increased from 800.5 MT (2014) to 1,630 MT (2024).
• India’s global shipping rank improved from 44th to 22nd.

Urban Development and Housing

• 91% of projects under the Smart Cities Mission completed.
• Under Swachh Bharat Mission-Urban 2.0, urban waste collection improved by 97% (2014-25).
• 64 lakh houses approved under PMAY-U (2015-24).

Metro Rail

• India’s metro network grew from 248 km (2014) to 993 km (2024).
• Monthly metro commissioning increased from 68 km to 6 km.
• Metro cities increased from 5 to 23.

Water Supply (Jal Jeevan Mission)

• Rural households with tap water connections increased from 3.23 crore (17%) in 2019 to 15.44 crore (79.74%) by 2025.

What is Infrastructure?

• Infrastructure refers to the essential systems required for a nation’s development, including transportation, energy, communication, and social amenities.

Features of Infrastructure

• Long-term investments: Roads, power grids, and railways need high capital.
• Public utilities: Includes electricity, water supply, and transport.
• Natural monopoly: High costs limit competition (e.g., railways, power grids).
• Non-tradable services: Cannot be imported/exported (e.g., roads, metro).
• Public and private goods: Benefits the society but may require user fees.
• High sunk costs: Once built, infrastructure assets cannot be repurposed easily.

Public Service Aspect

• Non-rival nature: More people can use it without depletion.
• Price exclusion: Some services are charged (e.g., toll roads, metro).
• Social infrastructure: Includes hospitals, schools, and skill centers.

Key Government Initiatives for Infrastructure

1. PM Gati Shakti National Master Plan: Integrated planning with 44 Central Ministries and 36 States/UTs
2. National Logistics Policy: India’s World Bank Logistics Performance Index (LPI) rank improved from 44 (2018) to 38 (2023).
3. Bharatmala Pariyojana: 18,926 km of roads completed under the project by November 2024.
4. Pradhan Mantri Gram Sadak Yojana: 7,71,950 km of rural roads completed as of 2024-25.
5. Regional Connectivity Scheme (UDAN): 619 regional routes launched, connecting 88 airports, 13 heliports, and 2 water aerodromes.

Conclusion

India has made remarkable progress in infrastructure development, significantly improving roads, railways, aviation, and urban facilities. The government’s investment in various sectors is set to further enhance connectivity and economic growth. Continued efforts in financing, innovation, and policy implementation will ensure sustainable and inclusive development for the future.