The Indian infrastructure imperative: How Indian Government’s ‘Viksit Bharat’ vision is paving the way for investment

The ‘Viksit Bharat’ 2047 vision is an ambitious plan by the government to transform India into a developed nation by the 100th anniversary of its independence in 2047. At the core of this vision is growing the economy from its current size of about $4 trillion to $30 trillion by 2046, an economic strategy spanning across decades that is centered on heavy public capital expenditure.

The government has placed infrastructure at the core of its fiscal policy, translating its vision into unprecedented budget allocations that are now creating a structural opportunity for investors.

Government Capex as the engine of growth

The most compelling evidence of this commitment is the exponential rise in the government’s Capital Expenditure (Capex). The central government Capex has seen a significant increase, from roughly ₹ 2 lakh crore in 2014-15 to an estimated INR 11.21 lakh crore in the 2025-26 budget according to the union budget. This six-fold increase is an investment that translates into creation of more jobs, an increased demand for goods and services and productivity gains across the entire economy.

This sustained spending has also had another impact – it has resulted in a substantial increase in the share of Infra-Related Gross Fixed Capital Formation (GFCF). This is indicative of a definitive shift towards investment-led growth rather than consumption-led growth. From development of Metro rail networks across different cities and expansion of ports to the strategic development of Dedicated Freight Corridors, India’s physical and digital landscape is being modernised to power this growth.

The government’s heavy lifting on Capex is designed to lay the groundwork, de-risk projects, and ultimately encourage the return of private capital expenditure (Private Capex), which is expected to take the baton and drive the next phase of growth.

Why Infra Funds may be considered as an investment vehicle of the future

For investors looking to participate in India’s growth story, an infrastructure fund offers a diversified and actively managed approach to capitalise on this trend. But, the investment is more effective if it comes through a dedicated fund, such as the Mirae Asset Infrastructure Fund, an open-ended equity scheme (NFO closes on December 1, 2025), which allows participation across a broad spectrum of sectors that form part of the infrastructure theme.

Active management for cyclicality

The infrastructure sector, while poised for long-term growth, can be volatile due to its cyclical nature and dependence on policy execution. An actively managed fund is crucial because it can:

• Navigate cycles: The fund manager can dynamically adjust allocations, increasing exposure to materials during the peak construction phase and shifting to operational assets (like power/ logistics) once the projects are completed and yielding cash flows.
• Right selections: By employing a blend of top-down (macro policy view) and bottom-up (stock-specific selection) strategies, the fund seeks to identify high-quality companies with strong balance sheets that are well-positioned to secure government contracts and effectively manage execution risks.

In conclusion, the ‘Viksit Bharat’ vision has changed the nature of infrastructure investment in India. It is a long-term, policy-backed, structural growth story, and a thematic infrastructure fund provides retail investors with the ideal, diversified instrument to participate in the construction of a developed India by 2047.

For investors looking to benefit from India's growth story, Mirae Asset Infrastructure Fund offers an opportunity to achieve balanced exposure and strategic growth.

NFO closes: Dec 1, 2025 NFO Opened: Nov 17, 2025

For further information about other schemes (product labelling and performance of the fund), please visit the website.

Note to the Reader: This article has been produced on behalf of the brand by HT Brand Studio and does not have journalistic/editorial involvement of Mint.