New Delhi, January 29, 2026: India’s infrastructure sector continues its rapid transformation, securing a prominent spot on the global stage. According to the Economic Survey 2025-26, India ranks among the top five countries globally in attracting private investment in infrastructure, particularly among low- and middle-income economies.
This leap reflects a sustained commitment to infrastructure development, enhanced by strategic public-private partnerships (PPPs) and groundbreaking initiatives such as PM GatiShakti and the National Logistics Policy.
Infrastructure remains a central pillar in India’s growth strategy, with public capital expenditure rising dramatically over the past few years. From ₹2.63 lakh crore in FY18, the government’s capital expenditure has jumped to ₹11.21 lakh crore in FY26, with an effective capital expenditure target of ₹15.48 lakh crore. This surge is positioning infrastructure as a key economic driver, with clear multiplier effects stimulating growth in other sectors.
Private Investment Propels India’s Infrastructure Boom
India’s rise as a top destination for private infrastructure investment is noteworthy. The country has become the largest recipient of private investment in infrastructure across South Asia, accounting for more than 90% of the region’s total private sector funding. The World Bank’s recognition of India’s robust infrastructure investment landscape underscores this achievement. The public-private partnership (PPP) model has played a pivotal role, with marked increases in project approvals by the Public-Private Partnership Appraisal Committee (PPPAC).
Economic Survey 2025-26: Core Infrastructure Sectors Show Impressive Growth
According to the Economic Survey 2025-26 Key sectors like highways, railways, aviation, ports, and energy have all experienced substantial growth, fueling India’s infrastructure revolution.
- Highways: The National Highway (NH) network expanded by 60%, from 91,287 km in FY14 to 1,46,572 km in FY26. Additionally, the operational high-speed corridors have increased nearly ten-fold, from 550 km in FY14 to 5,364 km by December 2025.
- Railways: India’s rail network has also undergone a massive upgrade, with over 69,439 route km of track as of March 2025. The government is targeting an additional 3,500 km in FY26. Furthermore, 99.1% of India’s rail network is now electrified, signaling progress toward a greener, more efficient transportation system.
- Civil Aviation: India has ascended to become the third-largest domestic aviation market in the world, with the number of airports growing from 74 in 2014 to 164 in 2025. Passenger numbers are expected to soar from 412 million in FY25 to 665 million by FY31. The RCS-UDAN initiative, alongside airport modernization projects, has catalyzed this growth.
- Ports: The Maritime India Vision 2030 has significantly improved port infrastructure. With seven Indian ports now ranking among the top 100 globally in the World Bank’s Container Port Performance Index, India’s maritime sector is becoming increasingly competitive. The government’s regulatory reforms have played a key role in enhancing operational efficiency.
Energy Transformation: Renewable Power Takes Center Stage
India’s energy sector is undergoing a profound shift toward sustainability. By November 2025, renewable energy constituted nearly 50% of the total power generation capacity, with India ranking third globally in overall renewable energy and solar capacity. This is a remarkable leap, as India’s renewable energy capacity tripled from 76.38 GW in March 2014 to 253.96 GW in November 2025. This growth is not only reducing the country’s reliance on fossil fuels but also bolstering energy security.
Power Sector Reforms Drive Economic Impact
The power sector has seen transformative reforms, with substantial investments aimed at enhancing distribution infrastructure. The Revamped Distribution Sector Scheme, launched in 2021, has bolstered financial sustainability and operational efficiency for distribution utilities. As a result, the country’s power sector has reported a historic turnaround, with DISCOMs achieving a positive Profit After Tax (PAT) for the first time in FY25.
A Vision for the Future
The Economic Survey 2025:26 concludes that India’s recent infrastructure push reflects a decisive shift toward scalability, integration, and quality. With a focus on multimodal connectivity, institutionalized planning, and sustained investment in both physical and digital infrastructure, India is on the path to becoming a global leader in infrastructure. The expansion in road, rail, aviation, port, and energy sectors is already delivering tangible benefits, including reduced travel times, faster freight movement, improved logistics, and greater access to essential services.
As private investment continues to flow into the sector, the future of India’s infrastructure appears more promising than ever. With continued reforms in financing, asset monetization, and public-private collaboration, the foundation has been laid for sustained growth and economic prosperity.
