The Union Government announces the Economic Survey 2025-26. They key highlights of the survey are as follows:
In the Roads and Bridges sector, a target of 10,000 km has been set for construction during 2025-26, with approximately 4,938 km completed as of December 2025. The overall highway network has expanded by around 60 per cent, growing from 91,287 km in 2013-14 to 146,572 km in 2024-25 (up to December). To align freight speeds with global benchmarks, the high-speed corridor (HSC) network has grown from 550 km in 2013-14 to 5,364 km in 2025-26 (up to December), with a target of approximately 26,000 km by 2032-33 and 9,366 km currently under implementation.
In line with the 2025-26 Budget announcement, a dedicated public-private partnership (PPP) pipeline of 13,400 km (estimated cost of Rs 8.3 trillion) has been identified for development over the next three years. Capital expenditure in the sector has increased 5.8 times, from Rs 0.53 trillion in 2014-15 to Rs 3.06 trillion in 2025-26 (Budget estimates).
Rural roads development has played a critical role in enhancing last-mile connectivity and rural integration. The Pradhan Mantri Gram Sadak Yojana (PMGSY) has achieved near-universal rural connectivity, with over 99.7 per cent of eligible habitations connected as of December 2025. Under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN), 2,495 roads (7,323.96 km) and 163 bridges have been sanctioned to connect 2,909 habitations, of which 248 roads (1,242.41 km) have been completed.
Further momentum has been gained through PMGSY-IV, launched in September 2024, which aims to connect 25,000 unconnected habitations by constructing or upgrading 62,500 km of roads and bridges at an estimated cost of Rs 701.25 billion during 2024-25 to 2028-29.
Priority has been accorded to highway projects linking ports, Inland Water Transport (IWT) terminals, and industrial corridors to reduce logistics costs. A new policy for access-controlled ring roads and bypasses has been finalised for cities with populations exceeding 0.1 million, employing innovative cost-sharing models such as land pooling and value capture to transform urban centres into growth engines.
On the monetisation front, India’s first public infrastructure investment trust (InvIT) is planned for launch in 2026, building on successful cumulative monetisation of Rs 1.52 trillion through toll-operate-transfer (ToT) and private InvITs.
To enhance project quality, stricter eligibility norms, additional performance security (APS) for low bids, and contractor performance ratings have been introduced. Drone surveys are now mandated for alignment planning, alongside deployment of Automated Intelligent Machine-Aided Construction (AIMC) and pre-cast components for non-critical items in projects exceeding Rs 3 billion. Additionally, a Drone Analytics Monitoring System has been implemented for encroachment detection, complemented by AI-based pothole and crack identification using network survey vehicles.
In the Railways sector, Indian Railways (IR) achieved freight loading of 1,215 million tonnes (mt) during April to December 2025, registering an increase of 3.3 per cent over corresponding period of the last year. IR’s operational efficiency has improved with average daily freight loading rising from 4.2 mt in 2024 to about 4.4 mt in 2025. As of March 2025, IR’s railway network has expanded to 69,439 route km (rkm), with target to extend the network further by 3,500 km during financial year (FY) 2025-26. It has also upgraded over 78 per cent of railway tracks for sectional speed of 110 kmph and above. Further, it has identified 434 projects, with an outlay of Rs 11.17 trillion, under three railway corridors mapped on the PM GatiShakti portal. Out of these projects, 122 projects covering 12,150 km have been sanctioned, and 198 projects spanning 19,779 km are under different stages of appraisal.
Under the public-private partnership model, 18 projects worth Rs 166.36 billion have been completed and seven projects are under progress with an investment of Rs 163.34 billion, as of September 2025.
Under the major projects, Mumbai-Ahmedabad high-speed rail project has achieved more than 55 per cent physical progress, and about 2,741 km (96.4 per cent) of the 2,843 km long Dedicated Freight Corridor (DFC) network has been commissioned (as of October 2025).
In the Aviation sector, the expansion of India’s airport and air navigation infrastructure, along with a growing ancillary ecosystem, including maintenance, repair, and overhaul (MRO) and leasing, is strengthening the civil aviation sector. These developments, supported by technology integration, position civil aviation as a key driver of nationwide economic connectivity and integration. The number of airports has risen to 164 in 2025, from 74 in 2014.
In FY 2025, overall air passenger traffic increased by 9.4 per cent to 411.8 million passengers, driven by strong demand from both domestic and international travelers. Traffic during FY 2026 until November was recorded at 275.5 million. Looking ahead, the passenger traffic is projected to rise to 665 million passengers by FY 2031. Further, Indian airports could also target to evolve into global aviation hubs by promoting layovers and enhancing transit experiences for international passengers.
Air cargo volumes also showed steady growth, increasing from 2.53 million metric tonnes (mmt) in FY 2015 to 3.72 mmt in FY 2025, with 2.95 mmt handled in FY 2026 up to December.
Key policy initiatives have notably driven the growth in civil aviation. Under the Ude Desh ka Aam Naagrik (UDAN) scheme, 657 routes have been operationalised, connecting 93 airports, including heliports and water aerodromes. Furthermore, the modified UDAN scheme has been announced to enhance regional connectivity by adding 120 new destinations and catering to 40 million passengers over the next ten years. Under the Greenfield Airports Policy, in-principle approval has been granted for 24 greenfield airports, of which 13 are already operational. Moreover, modernisation projects carried out at various airports since FY 2020 have taken the total passenger handling capacity at operational airports to around 575 million passengers per annum.
Further, the Gujarat International Finance Tec-City (GIFT City) has helped in addressing India’s leased fleet dependency, with 33 aircraft lessors managing 303 aviation assets.
In the Ports and Shipping sector, capacity at ports improved significantly from 1,561 million metric tonnes (mmt) in FY 2014-15 to 2771 mmt in FY 2024-25 (provisional). Moreover, the adoption of mechanisation, smart port solutions, and digital trade facilitation has substantially enhanced operational efficiency at major ports, with the average container vessel turnaround time achieving near-global best standards. The number of public-private partnership (PPP) projects awarded increased from 37 in FY 2014-15 to 87 in FY 2024-25, with the total value of PPP projects increasing from Rs 161.8 billion to Rs 610.29 billion, reflecting a 377 per cent rise.
Currently, 57 operational PPP projects valued at Rs 422.35 billion have increased port capacity by approximately 660 million tonnes per annum. In the shipbuilding sector, a comprehensive package of Rs 697.25 billion was approved in September 2025 to revitalise the country’s shipbuilding and maritime ecosystem.
In the Urban Infrastructure sector, around 1,036 km of metro rail and regional rapid transit system (RRTS) lines are operational in 24 cities (as of 2025) with several corridors under construction. The Delhi–Ghaziabad–Meerut Namo Bharat RRTS corridor has nearly 55 km network operational, and is progressing towards full commissioning of around 82 km through phased openings and multimodal integration at hubs such as Anand Vihar. These systems are being implemented in line with the Metro Rail Policy (2017), which mandates Comprehensive Mobility Plans, Unified Metropolitan Transport Authority frameworks, and defined viability criteria, as well as the National Transit-Oriented Development (TOD) Policy (2017), which promotes compact, mixed-use development, seamless multimodal connectivity, and value-capture financing in station influence areas.
The Jal Jeevan Mission has achieved a significant milestone, with over 81 per cent coverage of rural households having access to tap water supply. The Namami Gange Programme is a river conservation initiative aimed at reviving the Ganga basin. Through the adoption of models such as One City One Operator in cities like Kanpur and Prayagraj, and the development of green sewage treatment plants (STPs) powered by solar and biogas energy, riverbank stability has been enhanced. Further, the Economic Survey has emphasised the significant potential for the reuse of treated water, with the Ministry of Housing and Urban Affairs planning to develop a reuse capacity of 1,992 mld through sewerage projects under the Atal Mission for Rejuvenation and Urban Transformation. Under the Jal Hi Amrit initiative, so far, 860 STPs, with a total treatment capacity of 17,613 mld, have been enrolled in 402 cities across 21 states and 4 UTs through the online assessment platform.
Under the River Cities Alliance (RCA) – Action Plan 2025, expansion has taken palce from 30 to 145 cities. The 2025 Plan prioritizses river-sensitive urban planning and the formulation of 60 Urban River Management Plans.
Further, India will require capital investments of Rs 1,500-2,300 billion in technologies alone by 2047, to achieve 100 per cent sewage treatment.
In the Oil and Gas sector, during FY 2025, the export of petroleum products fell by 24.7 per cent year-on-year (YoY), due to softer crude oil prices which saw a 15.4 per cent YoY decline. On the other hand, the imports of petroleum crude rose marginally by 2.7 per cent YoY.
Moreover, the ethanol-blended fuels have emerged as a key component of India’s energy security strategy. Notable tangible gains have been seen in crude oil substitution, the reduction of foreign exchange outflows, reduced emissions and increased payments to farmers. As of August 2025, ethanol blending has resulted in savings of more than Rs 1.44 trillion in foreign exchange. It has also enabled the substitution of around 24.5 million tonnes of crude oil.
In the Telecom sector, strong gains have been recorded under the production-linked incentive (PLI) scheme, with exports growing at an average annual rate of 1.5 per cent between financial year 2020-21 (FY21) and FY25, while imports declined by 18.5 per cent over the same period.
The PLI scheme for telecom equipment manufacturing, launched in 2021 with an outlay of Rs 121.95 billion, has attracted investments of over Rs 47 billion and generated more than Rs 1 trillion in sales, including Rs 210 billion in exports. The initiative has also created around 30,000 jobs.
In FY25 alone, telecom equipment exports jumped 51.2 per cent year-on-year, the survey said. However, it also noted that imports of telecom gear, electronic components and computer hardware rose sharply in the financial year ended March 31, 2025.
The survey highlighted that telecom services contribute about 1.2 per cent to India’s gross value addition (GVA) and serve as a critical pillar of the digital economy by improving access, affordability and service delivery across sectors.
The survey also mentioned that total telephone connections increased from around 933 million in 2014 to over 1.2 billion by November 2025, with tele-density rising from 75 per cent to 86.8 per cent, largely driven by faster growth in rural areas. Internet subscriptions expanded significantly from about 2.5 million to 10.18 million by September 2025, alongside higher broadband penetration.
Affordability improvements have also driven a sharp rise in average monthly data usage per subscriber, which climbed from 62 MB in 2014 to around 25 GB by mid-2025.
According to the survey, telecom operators have rolled out 5G services across 99.9 per cent of India’s districts, supported by 0.51 million 5G base stations. The rapid deployment has been aided by timely spectrum auctions, financial reforms related to adjusted gross revenue (AGR), bank guarantees and interest rates, the removal of spectrum usage charges on spectrum acquired from 2022 onwards, simplified Standing Advisory Committee on Radio Frequency Allocation (SACFA) clearances, the GatiShakti Sanchar portal and streamlined right-of-way approvals.
On rural connectivity, the survey said the 4G saturation programme approved in 2022 has led to the deployment of 13,415 towers covering 19,901 villages. The BharatNet project has extended broadband connectivity to 0.21 million gram panchayats using optical fibre and satellite links.
The survey also pointed to major gains in fraud prevention through initiatives such as Sanchar Saathi, the Digital Intelligence Platform, artificial intelligence (AI)-driven fraud detection systems, the financial fraud risk Indicator, international spoofed call prevention mechanisms and the Indian counterfeited device restriction system. Together, these measures have helped identify and disconnect around 330 million fraudulent connections, flag nearly 9 million suspicious financial transactions, and prevent losses of about Rs 6.6 billion so far.