Capex support will continue for infrastructure development: Minister Chaudhary
- Infrastructure investments have been loaded in the recent past. For FY25, the Centre allocated ₹11.11 trillion for its own infrastructure capex and ₹3.9 trillion as grants to states for asset creation, according to data from the finance ministry.
India's capital expenditure on infrastructure projects such as roads, railways, ports, airports, and telecommunications has been rising steadily over the years, and the government stands ready to make adequate funds available in next year's budget as well to maintain the sector's growth momentum, minister of state for finance Pankaj Chaudhary said on Friday.
India aims to become a developed nation by 2047, the country's Independence centenary, and infrastructure development will continue apace, he told reporters.
Finance minister Nirmala Sitharaman is likely to present the budget for the fiscal year 2025-26 on 1 February.
Long-term vision
India's infrastructure spending has seen a significant boost under prime minister Narendra Modi's government. To be sure, infrastructure investments have been loaded in the recent past. For FY25, the Centre allocated ₹11.11 trillion for its own infrastructure capex and ₹3.9 trillion as grants to states for asset creation, according to data from the finance ministry. The capex support has been growing from just about ₹5 trillion in FY22, rising to ₹7.5 trillion in FY23 and then to ₹10 trillion in FY24.
“The focus of the Modi government is on building infrastructure, as it also has a positive impact on the economy. Accordingly, sufficient work has been done on building infrastructure - road, air and rail connectivity has improved considerably over the last 10 years," Chaudhary said.
Read more: Gujarat Energy Transmission plans IPO on Centre's directions to raise funds for capex on capacity addition
He said that infrastructure growth holds the key to India becoming a developed nation by 2047 with a GDP size of over $30 trillion.
He said that projects worth over ₹8.2 trillion were underway for developing highways in the country that link all existing road networks. The network of highways that was just 91,287 km in 2014 is now well over 1,46,195 km in length (as of November 2024). Also, the length of faster four- and six-lane highways has increased from just about 18,300 km in 2014 to 45,900 km now, the minister said.
He also highlighted the flagship Bharatamala projects in the highway sector, stating that 26,425 km of highways out of 34,800 km has already been awarded and work on 18,714 km has already been completed. Under the Bharatmala scheme, the government is building new roads, bridges, and tunnels to improve connectivity across the length and breadth of the country.
The minister also highlighted the fast pace of growth reported in the railways and aviation sectors, with rapid expansion of electrification of railway network and airports in the country.
The minister said that the number of airports in the country had risen from 74 in 2014 to 158 in 2024.
“The Modi government put its entire focus on development of infrastructure in the country. The work on developing a modem and efficient transport network over the past 10 years has improved connectivity and strengthened the standing of the country,” the minister added.
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Business NewsEconomyCapex support will continue for infrastructure development: Minister Chaudhary
First Published:13 Dec 2024, 05:53 PM IST
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