India Urged to Boost Infrastructure Investment for Sustainable Growth, Economic Survey Highlights
India faces a crucial challenge in its bid to sustain high economic growth in the coming decades, according to the Economic Survey 2024-25, presented by Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman. The report calls for a continued increase in infrastructure investment over the next two decades, stressing that while public investment has made notable progress, it is still not enough to meet the country’s growing infrastructure needs.
The Economic Survey outlines how infrastructure development—spanning physical, digital, and social sectors—has been a primary focus for the government in recent years. With increased public spending, the creation of new institutions to streamline approvals, and innovative resource mobilisation mechanisms, there has been tangible progress. However, the survey emphasises that public sector efforts alone cannot meet the demand for modernising India’s infrastructure, particularly as the nation sets its sights on the ambitious “Viksit Bharat@2047” goal. This vision aims to transform India into a developed nation by its centenary of independence.
To achieve this, the report stresses the importance of ramping up private sector participation in infrastructure projects. While the government has taken significant steps to boost infrastructure, private sector involvement is essential to meet the growing demand. This includes improving the private sector’s ability to conceptualise and execute projects, as well as enhancing their confidence in risk and revenue-sharing models, contract management, conflict resolution, and project closure. For this to be successful, the Economic Survey highlights the need for a coordinated approach involving all stakeholders. This includes collaboration between various levels of government, financial institutions, project management experts, and the private sector. The private sector, in particular, must improve its capacity to undertake large-scale infrastructure projects, especially in areas like risk-sharing, contract management, and project execution.
One of the key aspects the survey touches upon is the importance of public-private partnerships (PPPs) in the infrastructure sector. While the government has made strides in creating the necessary framework for PPPs, the private sector must also step up its involvement. The report calls for a mutual commitment to make these partnerships work, with both the government and private players working together to drive growth and meet infrastructure needs. The Economic Survey also stresses the importance of innovative project financing and execution models. By leveraging new approaches to financing, such as asset monetisation, the government can encourage more private sector investment in infrastructure. Additionally, developing sector-specific strategies for execution and enhancing expertise in high-priority areas will be crucial for the long-term success of these projects.
From an economic standpoint, improving infrastructure is vital for sustaining India’s rapid growth. Well-developed infrastructure boosts productivity, enhances the quality of life for citizens, and increases the efficiency of businesses, all of which contribute to a thriving economy. But as the Economic Survey makes clear, infrastructure development cannot rely solely on public funding. The private sector must play a larger role, both in terms of investment and expertise. The Economic Survey 2024-25 highlights the critical need for continued infrastructure investment and greater private sector participation. By fostering public-private partnerships, improving project execution capabilities, and enhancing risk and revenue-sharing mechanisms, India can ensure that its infrastructure is prepared to support its high-growth trajectory over the next two decades. This coordinated effort will be key to achieving the vision of a Viksit Bharat by 2047.
