Economic Survey 2025-26: India Among Top Global Destinations for Private Infrastructure Investment

The Economic Survey 2025-26, tabled in Parliament, underscores a transformative phase in India’s infrastructure development. According to the World Bank, India ranks among the top five countries globally for private infrastructure investment in low- and middle-income countries. It is now South Asia’s largest recipient of private infrastructure investment, accounting for over 90% of the region’s total.

Expansion of Physical Infrastructure

The growth in India’s infrastructure has been substantial:

• National Highways: Expanded by 60% to 1,46,572 km (as of FY26, December).
• High-Speed Corridors: Operational network increased nearly tenfold, from 550 km in FY14 to 5,364 km in FY26.
• Aviation: India has become the third-largest domestic aviation market globally.
• Ports: Improved efficiency has placed several Indian ports in the top 100 globally in the World Bank’s turnaround time rankings.

Role of Public Capital Expenditure

Public investment has been a key driver of this transformation:

• Capital expenditure in FY26: ₹11.21 lakh crore (US$ 124.6 billion), up from ₹2.63 lakh crore (US$ 29.2 billion) in FY18.
• Actual capital expenditure: ₹15.48 lakh crore (US$ 172 billion).

These investments reflect a strong government push toward building multi-modal, integrated infrastructure across the country.

Diversifying Financing for Infrastructure

The sector’s financing architecture is becoming increasingly diverse:

• NBFC credit and institutional mechanisms like Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) are playing a larger role in long-term capital mobilisation.

Also Read: Economic Survey 2026: India–US Trade Deal Seen as Key to Reducing Tariff Pressure

Integrated Multi-Modal Infrastructure Plans

The development across railways, roads, ports, aviation, and renewable energy indicates a coordinated approach under PM GatiShakti and the National Logistics Policy. Key highlights include:

• Renewable energy capacity is approaching half of India’s total power capacity.
• The policies aim to reduce transaction costs and execution risks, fostering faster and more efficient infrastructure delivery.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.