Infrastructure continues to play a key role in the growth strategy of the country. Rising investments across infrastructure sectors have widened capacities, enhanced connectivity, and improved logistics efficiency. Key initiatives such as the PM GatiShakti, the National Logistics Policy, and frameworks for increasing public-private partnerships (PPPs), complemented by rising installed power
capacity, renewable energy generation and efficient water systems, are paving the way to achieving growth targets.
The infrastructure financing landscape is witnessing a shift from a historical dependence on bank credit towards a diversified ecosystem of alternative financing vehicles and capital market instruments. A major regulatory milestone in infrastructure credit is the RBI (Project Finance) Directions 2025, which has introduced a unified framework for project lending across all financial institutions, ensuring a consistent approach to large-scale financing. Further, capital market channels for long-term funding and asset recycling have been strengthened through incremental reforms. The Securities and Exchange Board of India’s (SEBI) Small and Medium Real Estate Investment Trusts (SM REIT) framework reduced the minimum asset size relative to existing REITs, from Rs 5 billion to Rs 0.5 billion. It also introduced a scheme-based structure, allowing multiple schemes to be managed under one SM REIT.
A target of 10,000 km has been set for construction for 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 9,366 km currently under implementation and a target of approximately 26,000 km by 2032-33.
Rural road 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 the 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.
Priority is being 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 sector infrastructure investment trust (InvIT) is planned for launch in 2026, building on a successful cumulative monetisation of Rs 1.52 trillion through toll-operate-transfer (ToT) and private InvITs.
Railways
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 the corresponding period of the previous year. IR’s operational efficiency improved with average daily freight loading rising from 4.2 mt in 2024 to about 4.4 mt in 2025. As of March 2025, its railway network had expanded to 69,439 route km (rkm), with a target to extend it further by 3,500 km during financial year (FY) 2025-26. It has 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. Of these projects, 122 projects covering 12,150 km have been sanctioned, and 198 projects spanning 19,779 km are at different stages of appraisal.
Under the PPP model, 18 projects worth Rs 166.36 billion had been completed, and seven projects, involving an investment of Rs 163.34 billion, were under progress as of September 2025.
Major projects include the Mumbai- Ahmedabad high-speed rail project, which achieved more than 55 per cent physical progress, and the 2,843 km long dedicated freight corridor (DFC) network, out of which 2,741 km (96.4 per cent) had been commissioned as of October 2025.
Aviation
The expansion of the airport and air navigation infrastructure, along with segments including maintenance, repair and overhaul (MRO) and leasing, is strengthening the sector. These developments, supported by technology integration, position civil aviation as a key driver of nationwide economic connectivity and integration. The number of airports rose to 164 in 2025, from 74 in 2014. In FY 2024-25, overall air passenger traffic increased by 9.4 per cent to 411.8 million passengers, driven by a strong demand from both domestic and international travellers. Looking ahead, the passenger traffic is projected to rise to 665 million by FY 2030-31. Further, Indian airports could 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 2014-15 to 3.72 mmt in FY 2024-25.
Under the Ude Desh ka Aam Naagrik (UDAN) scheme, 657 routes have been operationalised, connecting 93 airports, including heliports and water aerodromes. Further, the modified UDAN scheme has been announced to enhance regional connectivity to 120 new destinations and cater to 40 million passengers over the next 10 years. Moreover, modernisation projects carried out at various airports since FY 2019-20 have taken the total passenger handling capacity at operational airports to around 575 million passengers per annum.
Ports and shipping
Capacity at ports improved significantly from 1,561 mmt in FY 2014-15 to 2,771 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 PPP projects awarded increased from 37 in FY 2014-15 to 87 in FY 2024-25, with the total value of PPP projects growing 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.
Urban infrastructure
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 still at various stages of construction. The Delhi-Ghaziabad-Meerut Namo Bharat RRTS corridor has a nearly 55 km network operational. 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).
The Jal Jeevan Mission has achieved a significant milestone, with over 81 per cent coverage of rural households having access to tap water supply. 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 million litres per day (mld) through sewerage projects under the Atal Mission for Rejuvenation and Urban Transformation. Under the Jal hi Amrit initiative, so far, 860 sewage treatment plants (STPs), with a total treatment capacity of 17,613 mld, have been registered in 402 cities across 21 states and four UTs through the online assessment platform.
The River Cities Alliance (RCA) – Action Plan 2025 has been expanded from 30 to 145 cities. It prioritises river-sensitive urban planning and the formulation of 60 urban river management plans.
Further, India will require capital investments of Rs 1,500 billion-Rs 2,300 billion in technologies alone by 2047 to achieve 100 per cent sewage treatment.
Oil and gas
During FY 2024-25, the export of petroleum products fell by 24.7 per cent year on year amid softer crude oil prices, which saw a 15.4 per cent year-on-year decline. Meanwhile, the imports of petroleum crude rose marginally by 2.7 per cent year on year.
As of October 2025, the installed capacity of biomass power and cogeneration projects stood at 9.82 GW (grid-connected) and 0.935 GWeq (off-grid). Further, the installed capacity
of grid-connected waste-to-energy projects stood at 309.34 MW, while off-grid capacity stood at 546.28 MWeq. Moreover, around 5.12 million small biogas plants and 361 medium-sized biogas plants with an aggregate capacity of 11.5 MW were installed as of
October 2025.
Ethanol-blended fuels have emerged as a key component of India’s energy security strategy. As of August 2025, ethanol blending had resulted in savings of more than Rs 1.44 trillion in foreign exchange. It also enabled the substitution of around 24.5 mmt of crude oil.
Notably, the National Green Hydrogen Mission targets to add 5 mmt of green hydrogen annually by 2030. A production capacity of 862,000 tonnes per year has been allocated to 18 companies and 15 firms have been awarded 3,000 MW of annual electrolyser manufacturing capacity. Further, the three designated green hydrogen hubs comprise the Deendayal Port Authority, Gujarat; the V.O.
Chidambaranar Port Authority, Tamil Nadu; and the Paradip Port Authority, Odisha.
Power
The survey highlights continued expansion of the power sector, with installed capacity rising by 11.6 per cent year on year to 509.74 GW as of November 2025. Alongside generation capacity, the pace of transformation capacity addition picked up during the year, reflecting ongoing investments across the transmission and distribution network.
The Indian government has implemented multiple schemes to support states and distribution utilities in providing reliable and uninterrupted power supply. Under the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), the Integrated Power Development Scheme (IPDS) and the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya), an investment of about Rs 1.85 trillion was made to strengthen distribution infrastructure across states. As a result, 18,374 villages were electrified under DDUGJY, while around 28.6 million households gained electricity access during the Saubhagya period. To further address structural inefficiencies in distribution, the Revamped Distribution Sector Scheme was launched in 2021 with an outlay of Rs 3.03 trillion. As of the current survey period, projects worth
Rs 2.8 trillion have been approved under the scheme, covering network strengthening and the roll-out of smart metering solutions.
Notably, the gap between energy demand and supply declined sharply from 4.2 per cent in FY 2013-14 to zero by November 2025, reflecting both infrastructure augmentation and targeted policy measures aimed at operational discipline in the distribution segment.
The survey also mentions the government’s proposal to introduce the Electricity (Amendment) Bill, 2026 to deepen structural reforms.
Further, distribution remains the most financially stressed segment of the power value chain. Between FY 2020-21 and FY 2024-25, accumulated losses of distribution utilities increased from Rs 5.5 trillion to Rs 6.47 trillion, while outstanding debt rose to Rs 7.26 trillion, largely due to non-cost reflective tariffs, delayed subsidy payments, and high aggregate technical and commercial (AT&C) losses. To address these challenges, several reforms have been undertaken. For the first time, power distribution utilities recorded a positive profit after tax of Rs 27.01 billion in FY 2024-25 compared to a loss of Rs 679.62 billion in FY 2013-14. AT&C losses declined from 22.62 per cent to 15.04 per cent over the same period, while the average cost of supply-average revenue realised gap narrowed from Re 0.78 per kWh to Re 0.06 per kWh.
The survey also mentions the India Energy Stack (IES) as a proposed digital public infrastructure for the power sector. Conceived to support a more distributed, digital and participatory energy system, the IES aims to address fragmentation in data systems and enable scalable consumer participation. It is envisioned as a consent-based, interoperable framework rather than a centralised database, with data remaining with its rightful owners.
Renewables
The survey has highlighted significant progress in energy generation from non-fossil fuels and renewable energy sources. India has surpassed its goal of achieving 50 per cent installed power capacity from non-fossil fuel sources, which stood at 51.93 per cent at the end of December 2025. Further, from April 2025 to December 2025, a total of 38.61 GW of renewable energy capacity had been installed in the country. This includes 30.16 GW of solar power, 4.47 GW of wind power, 0.03 GW of biopower and 3.24 GW of hydro
power. As of December 2025, 8 GW of rooftop solar capacity had been installed under the PM Surya Ghar: Muft Bijli Yojana. Moreover, as of December 2025, under Component B of the PM-KUSUM scheme, more than 975,000 standalone solar pumps had been installed. Under Component C, 11,781 grid-connected solar pumps had been solarised, while 1,189,787 pumps had been covered under feeder-level solarisation, reflecting steady implementation across components. Under the Development of Solar Parks and Ultra Mega Solar Power Projects scheme, as of December 2025, 55 solar parks had been sanctioned with a combined capacity of 39,973 MW, and 16,121 MW of solar projects had been installed. The PLI scheme for high-efficiency solar photovoltaic modules were mentioned in the survey as the key enabler of this
renewable energy progress.
The survey also underlines the importance of energy storage as the installed renewable energy capacity in the country continues to surge, along with measures adopted to promote its uptake. Manufacturing has been supported through a Rs 181 billion production-linked incentive (PLI) scheme for 50 GWh of advanced chemistry cell capacity, in which 10 GWh is earmarked for grid-scale storage, and a grant-based support is provided to pumped storage projects to enable infrastructure, among other measures.
Critical minerals are a cornerstone of the renewable energy transition, and key measures have been undertaken by the government for its promotion. These include the National Critical Mineral Mission (NCMM) with a financial outlay of Rs 163 billion, and an expected investment of Rs 180 billion from public sector undertakings and other sources. The mission also includes a Rs 15 billion incentive scheme for critical mineral recycling. Further, the country is engaging in international partnerships such as the Minerals Security Partnership and the Indo-Pacific Economic Framework.
Telecom
The telecom sector has recorded strong gains under the PLI scheme, with exports growing at an average annual rate of 1.5 per cent between FY 2020-21 and FY 2024-25, 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.
In FY 2024-25 alone, telecom equipment exports jumped 51.2 per cent year on year. Further, imports of telecom gear, electronic components and computer hardware also went up sharply.
The total number of telephone connections increased from around 933 million in 2014 to over 1.2 billion by November 2025, with teledensity 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 also saw a sharp rise in average monthly data usage per subscriber, climbing from 62 MB in 2014 to around 25 GB by mid-2025.
Moreover, telecom operators rolled out 5G services across 99.9 per cent of the country’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), etc.
In terms of rural connectivity, the 4G saturation programme, approved in 2022, led to the deployment of 13,415 towers covering 19,901 villages. Meanwhile, the BharatNet project extended broadband connectivity to 0.21 million gram panchayats using optical fibre and satellite links.
