India Fast-Tracks Big Infrastructure to Boost Growth

12 Sep 2025 CW Team

India is shifting its policy focus to fast-tracking approvals for large-scale infrastructure projects under the ‘Viksit Bharat 2047’ plan, following the implementation of Goods and Services Tax (GST) reforms. Government officials said ministries have been instructed to prioritise projects of national importance, especially those spanning multiple states or transforming entire sectors.

The road transport ministry aims to construct 50,000 km of access-controlled highways over the next 10–12 years at an estimated cost of Rs 20 billion. The Union Budget for FY26 allocated Rs 11.21 billion for infrastructure spending, with public-private partnerships (PPP) expected to play a key role in projects with strong return potential, easing pressure on state finances. Officials noted that bundling projects will accelerate approvals, with PPPs as the primary financing mechanism for high-return ventures. The strategy is designed to support India’s 7.8 per cent GDP growth in Q1 FY26 amid global tariff pressures and geopolitical risks.

The World Bank has emphasised that India needs to raise its real investment rate from 33.5 per cent of GDP to 40 per cent by 2035 to sustain long-term growth. Rising infrastructure needs underpin the nation’s urbanisation, climate commitments, and economic development goals. Capital expenditure surged to Rs 2.75 billion during April–June 2025, representing 24.5 per cent of the full-year target, reflecting the government’s investment in large-scale projects to stimulate growth and employment.

Meanwhile, global rating agency Fitch, citing the robust 7.8 per cent growth in Q2 2025, revised its FY26 growth forecast upwards to 6.9 per cent from the 6.5 per cent projected in June.

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