Economic Survey 2025: India needs to increase investment on infrastructure in the next two decades

Economic Survey 2025: India needs to continuously increase investment in the infrastructure sector in the next two decades to maintain the high speed of growth. This has been said in the Economic Review 2024-25 presented in Parliament on Friday. The review said, “India needs to continuously increase infrastructure investment in the next two decades to maintain a high growth rate.”

The review says that the expenditure on the infrastructure sector was affected due to general elections and monsoon in the first quarter of FY 2024-25. However, the pace of capital expenditure accelerated between July and November last year. The document states that the Center’s capital expenditure for the current financial year has been fixed about 3.3 times the capital expenditure of FY 2019-20. It further stated that there is a need to preserve safe urbanization, public transport, heritage sites, monuments and tourist destinations from disaster. Also, more attention will have to be paid to the rural public infrastructure including contact.

The review said, “Additional emphasis has been laid on creating renewable energy capacity under our commitments for pure zero emissions.” It said that there are binding budgetary obstacles at different levels of the government.

Economic reviews say that private participation in infrastructure areas should be increased in many ways like program and project planning, financing, construction, maintenance, mandulation and impact assessment. The government has initiated several initiatives like National Infrastructure Pipeline, National Innovation Pipeline and PM-Gati Shakti in this direction. Also, financial market regulators have improved to encourage private participation.

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