India is one of the world's fastest-growing economies, and infrastructure will play a massive role in helping the country take a huge development and economic leap. Lately, the sector has attracted intense focus from the government, devising policies for creating a truly best-in-class infrastructure in the country. In August 2021, Mr. Narendra Modi, the Prime Minister of India, announced schemes worth US$ 1.35 trillion dedicated to building state-of-the-art infrastructure that will boost the economy. The Prime Minister, in his address, said that the schemes would give "employment opportunities for hundreds of thousands."
In the Union Budget 2022-23, the government has proposed infrastructure spending of Rs. 10 lakh crore (US$ 0.13 trillion). This is an increase of almost 35% over the previous year. Investment-wise, Indian Railways have seen a huge spike of 50% YoY in outlays. This entails the proposed development of 100 PM Gati Shakti cargo terminals over the next three years. Additionally, the infrastructure outlay includes expanding the National Highway network by 25,000 km this year. The proposed outlay on housing and ports, and urban infrastructure is flat at FY 2021-22 levels.
According to the Economic Survey of India, the country needs to spend US$ 1.4 trillion every year to reach US$ 5 trillion GDP by FY 2024-25. Thus, to accelerate the efforts to strengthen the country's infrastructure, the National Infrastructure Pipeline (NIP) was launched with a proposed infrastructure outlay of Rs. 111 lakh crore (US$ 1.4 trillion) over a period of FY 2020-25. The scheme also entails attracting both domestic and foreign investments in the sector. The NIP has expanded to more than 9,000 projects (initially 6,835), encompassing 34 infrastructure sub-sectors.