Centre Plans ₹11.21 Lakh Crore Infrastructure Boost: Bullet Trains and Shipyards Prioritised

India is set for a major infrastructure transformation as the Centre unveils a ₹11.21 lakh crore initiative targeting long-term growth through priority sectors like bullet trains, mega shipyards, highways and ports, supported by simplified GST reforms.

Massive Infrastructure Push Under Viksit Bharat 2047

The Centre’s new infrastructure plan under the Viksit Bharat 2047 vision will focus on long-gestation projects critical for economic growth. A total of ₹11,21,000 crore has been earmarked in the 2025-26 budget towards infrastructure development. The plan includes bullet train corridors, high-capacity shipyards, and 50,000 km of access-controlled highways to be developed over the next 10 to 12 years.

To streamline execution, ministries have been instructed to bundle projects for faster approvals. Public-private partnerships will be favoured in high-return sectors such as expressway construction and port terminals.

GST Reforms and Expected Economic Impact

Alongside the infra push, a major GST rationalisation is being implemented, reducing the previous four-tier system to two primary slabs of 5% and 18%. A special 40% slab will apply to luxury and sin goods, including high-end vehicles, yachts, aircraft and tobacco products. Effective from September 22, 2025, the restructuring is aimed at improving compliance and driving consumption among the masses.

The rationalisation is projected to have a fiscal impact of ₹48,000 crore annually. However, early reports indicate the revenue loss may be as low as ₹3,700 crore, especially as increased consumption, driven by lower taxes on essentials, is expected to offset part of the shortfall.

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Long-Term Growth Through Private Sector and Policy Integration

To align execution across sectors, a high-level panel led by Pawan Goenka of IN-SPACe and Niti Aayog officials is charting detailed ministry-level targets. Much of the ₹20,00,000 crore cost of the 50,000 km expressway project is expected to come from private investments. The World Bank suggests India will need to raise its investment rate from 33.5% to 40% of GDP by 2035 to ensure sustained growth.

Conclusion

The Centre’s ₹11.21 lakh crore infrastructure agenda, reinforced by GST reforms, aims to accelerate long-term development. With bullet trains, highways and mega shipyards at the core, this strategy supports economic resilience amid evolving global conditions.

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