Indian Economy News

World Bank ranks India among the top five countries in terms of private investment in infrastructure among low- and middle-income economies

The infrastructure saga in India is in a bold phase of change, as outlined in the Economic Survey 2025-26, tabled in Parliament. The Economic Survey points out that according to the World Bank, India is among the top five countries globally for private investment in infrastructure in low- and middle-income countries, and India is now the largest recipient of private infrastructure investment in South Asia, accounting for over 90% of the total in the region. The increase in physical infrastructure has been dramatic: the national highway system has grown by 60% to 1,46,572 km (as of FY26 up to December), and operational high-speed corridors have increased close to ten times from 550 km in FY14 to 5,364 km (as of FY26). India is now the third-largest domestic aviation market in the world, while ports with reduced turnaround times have entered the top 100 globally on the World Bank’s performance ranking.
The Economic Survey also highlights the critical contribution of public capital expenditure to this growth Rs.11.21 lakh crore (US$ 124.6 billion) in FY26, up from Rs. 2.63 lakh crore (US$ 29.2 billion) in FY18 alongside an actual capital expenditure of Rs. 15.48 lakh crore (US$ 172 billion). The financing architecture is also becoming more diverse, with NBFC credit and institutional mechanisms such as Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) assuming a larger role in long-term capital raising. The increase in the sector covering railways, roads, ports, aviation, and renewable energy capacity, with renewable power nearing half the total capacity, indicates an integrated and multi-modal infrastructure plan under PM GatiShakti and the National Logistics Policy. These plans are also helping to reduce transaction costs and risks of execution across the country. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.