Ahead of presenting the Union Budget 2024, Finance Minister Nirmala Sitharaman on Monday, July 22, presented Economic Survey 2024, a document which states the development of the Indian economy. As per the survey report, there is a significant role of public sector investment in funding large scale infrastructure projects. It highlighted that the capital investment by the public and private sectors increased from 0.4 per cent of GDP in FY15 to approximately 1 per cent (or Rs 3.01 lakh crore) in FY24. In FY24, the industry saw the largest amount of private investment ever.
Additionally, the development of national roadways will expand by 1.6 times from 2014 to 2024. The national highway network has grown dramatically as a result of the Bharatmala Pariyojana. By fiscal year 2024 (FY24), the average highway construction pace has tripled from 11.7 km/day in FY14 to 34 km/day. It further highlighted that by altering the model concession agreement to allow for the participation of private companies in the construction of highways, the government has been attempting to draw private investment into the road industry.
Notedly, 8,29,409 km of road length have been approved under the Pradhan Mantri Gram Sadak Yojana (PMGSY), with 7,63,308 km finished by June 2024 at a cost of Rs 3.23 lakh crore. However, six multimodal logistics parks (MMLPs) with investments of Rs 2,505 crore have been awarded till FY24. For FY25, seven more MMLPs are scheduled. MMLPs can improve the nation’s logistics industry by reducing the time required to move products between sites by combining several forms of transportation. As part of the national industrial corridor initiative, 11 further projects are being constructed in phases.
Flying high
On the aviation front, India is still among the markets with the fastest growth as out of the 21 permitted greenfield airports, 12 have been put into service. To complement expanded passenger handling capacity, 21 airports opened new terminal buildings in FY24. Furthermore, since the launch of UDAN Regional Connectivity Scheme (RCS) seven years ago, 1,390 routes have been given to different airlines; of those, 579 routes currently connect 85 underserved and unserved airports.
In addition to this, over Rs 26,000 crore in capital expenditures are planned by the government during FY20–FY25. Up until FY24, the Airports Authority of India (AAI) has accomplished almost Rs 23,000 crore. Over the previous five years, capital expenditures in the airport industry have amounted to Rs 72,000 crore, with additional investments from public-private partnerships (PPP) and other airport operators totaling approximately Rs 49,000 crore.
On the track
For Railways, the last five years have seen a 77 per cent increase in railway capital expenditure. The Amrit Bharat Station Redevelopment Scheme with 1,324 stations around the country will be upgraded.
Additionally, 41.7 per cent of the Mumbai-Ahmedabad High Speed Rail project had been completed by March 31, 2024, and Rs 59,291 crore had been spent. Meanwhile, 96.1 per cent of the Dedicated Freight Corridor (DFC) route was finished by the end of FY24.
The Indian Railways’ electrified network reached 63,456 km, that is 96.4 per cent, under the mission 100 per cent electrification programme. Over the last five years, the rate of electrification has increased at an approximate rate of 5,594 route km annually (2019-24).
Shipping ahead
It is interesting to note that India moved up from 44th place in 2014 to 22nd place in 2023 in the World Bank Logistics Performance Index for International Shipments. Capital spending in the ports, shipping and waterways sectors increased by 27 per cent between FY23 and FY24.
The ‘Harit Sagar’ Green Port rules, launched in May 2023, have resulted in four major ports producing more renewable energy than they consume. The Indo-Bangladesh Protocol (IBP) route offers alternative connectivity for the North Eastern states from Guwahati and Jogighopa to Kolkata and Haldia ports. It was created at an estimated cost of Rs 305.84 crore. Because of actions made over the past nine years, the amount of goods handled along the IBP route has expanded dramatically.
