The past 12 months have been difficult. The Trump administration’s/US tariff policies have forced a recalibration of trade ties. Geopolitical tensions have intensified due to the conflict in Iran. Inflation has spiked across fuels and commodities. A depreciating rupee has put pressure on India’s trade account.
Despite these difficult circumstances, infrastructure development has progressed, albeit with hiccups. The prevailing turmoil meant that this was not simply a period of continuity. In the energy sector, gas shortages and high crude prices triggered an imposition of emergency short-term measures and a policy rejig to encourage exploration and production through the Samudra Manthan – National Offshore Exploration Scheme.
The telecom sector and its ecosystem saw the most consequential policy changes. Satellite broadband promises to significantly improve connectivity in underserved areas, while changes in licensing and spectrum allocation could alter the industry landscape. The focus on data centres is expected to improve access to artificial intelligence (AI). Support for electronics manufacturing and research and development (R&D) could make India a global player by enabling the creation of intellectual property. Schemes such as the India Semiconductor Mission (ISM) 2.0 and the Mobile Phone Manufacturing Scheme aim to raise India’s profile as a manufacturer.
In finance, the success of the National Monetisation Pipeline (NMP) has led to a big scale-up in NMP 2.0. The new scheme aims to monetise Rs 16.7 trillion across the next four fiscal years. Other routes to access capital have also improved as more infrastructure investment trusts (InvITs) have come into play.
On the transport front, there has been a slowdown in highway construction. But inland waterways are now on the logistics map, while new airports in Navi Mumbai and Jewar have begun serving the two busiest metro regions. A look at the key trends across sectors…
Oil and gas
Geopolitical tensions and supply chain disruptions have led to efforts to reduce import dependence. The conflict in Iran triggered emergency efforts to raise domestic liquefied petroleum gas production, along with other measures to insulate domestic consumers. Policy has evolved to emphasise piped natural gas as an alternative.
The Samudra Manthan scheme is a policy development designed to lend momentum to gas exploration and production. Overall, the aim is to increase the share of natural gas in the energy mix to 15 per cent by 2030. The National Gas Grid is also expanding to ensure supply.
Digitalisation is a big enabler. Geographic information system (GIS), digital twins and predictive analytics are gaining traction. Customer-facing processes are being driven by smart meters, AI chatbots and digital apps.
Compressed biogas (CBG) is making headway. The GOBARdhan – National Circular Bioenergy Scheme positions CBG as a part of the future mix. The ethanol-blended petrol programme has gained prominence (and caused some controversy). There is policy support for sustainable aviation fuel and sustainable maritime fuel, as well as green hydrogen, ammonia and biofuels. The National Green Hydrogen Mission and the Strategic Interventions for Green Hydrogen Transition programme aim to meet climate goals while positioning India as a global hub.
Water
Water supply, sewerage, drainage, river rejuvenation and conservation are now managed through a more integrated framework. India is water-stressed, and treatment and reuse will be increasingly relevant given the rise of data centres, electronics, steel, chemicals, pharmaceuticals and other water-intensive industries. Reducing non-revenue water is another imperative.
The expansion of used water treatment capacity is supported by reuse mandates, compliance requirements, digital monitoring and decentralised solutions. This requires the creation of a reuse system with pipelines, quality standards, pricing mechanisms, etc.
The Jal Jeevan Mission 2.0, with an outlay of Rs 8.69 trillion, is a major step. By August 2026, 82 per cent of rural households had functional taps. A wide range of sewerage, stormwater drainage and waterbody rejuvenation projects are under implementation under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and AMRUT 2.0. The National Mission for Clean Ganga has completed urban river management plans for 13 cities as part of its programme to cover 60 cities.
West Bengal’s Policy on Safe Reuse of Treated Wastewater requires bulk users to maximise reuse. Haryana is also looking at 100 per cent reuse of treated wastewater by March 2031.
Decentralised treatment is gaining traction at the urban level. The induction of private operators by urban local bodies could further drive efficiency. Digitalisation is now part and parcel of operations, with internet of things (IoT) sensors, supervisory control and data acquisition systems, GIS, smart metering, online quality monitoring and data analytics being increasingly deployed.
Civil aviation
Civil aviation has witnessed improvement in airport infrastructure, better connectivity, fleet expansions and increasing cargo capacity, along with facilities for maintenance, repair and overhaul (MRO) operations. Investment mechanisms have also improved, with Gujarat International Finance Tec-City (GIFT City) financing fleet expansions.
The Modified Ude Desh ka Aam Nagrik scheme was launched in July 2026 with an outlay of Rs 288.4 billion across 10 years. States like Andhra Pradesh, Odisha and Assam have drafted their own civil aviation policies. The union cabinet approved the Emergency Credit Line Guarantee Scheme 5.0, allowing eligible airlines to access credit guarantees.
Navi Mumbai International Airport, Noida International Airport and Alluri Sitarama Raju International Airport (Andhra Pradesh) have started commercial operations. Many existing airports have undertaken upgrades.
On the cargo front, Hyderabad International Airport commissioned Cargo Terminal 2 in May 2026, while Cochin Airport expanded its export warehouse. FedEx is building an automated air cargo facility at Navi Mumbai. GMR Cargo and Logistics has secured Rs 7.5 billion in financing for the development of Delhi Airport Cargo City. On the MRO front, IndiGo is constructing a major MRO facility at Bengaluru Airport. Safran has inaugurated a large LEAP engine MRO facility in Hyderabad.
Akasa Air has expanded its fleet to 40 aircraft and regional carrier Fly91 has expanded its ATR 72-600 fleet. Air India has completed the revival of 30 previously grounded aircraft and is now inducting new aircraft. IndiGo has converted purchase rights into firm orders for Airbus A350-900 aircraft, taking its total wide-body order to 60 aircraft.
GMR has entered into an agreement with Groupe ADP, which will acquire a 7.3 per cent stake in GMR Airports. Air India has secured a $215 million term loan to finance six Boeing 777-300ER aircraft in a transaction at GIFT City. The IndiGo Board has approved capital investment of up to $820 million in InterGlobe Aviation Financial Services IFSC Private Limited for acquisitions.
A draft sustainable aviation fuel policy is currently being devised. Energy-efficient buildings, electrification of ground operations, electric ground-support equipment and the greater use of renewables are other measures supporting sustainability.
The NMP 2.0 sets a monetisation target of Rs 275 billion. It aims to monetise airport assets through public-private partnership (PPP) concessions and leases, rather than outright sales.
One area of concern is the vulnerabilities caused by the sector’s functional duopoly. The IndiGo crisis in December 2025 left millions stranded. Policymakers need to take measures to prevent a recurrence.
Ports and shipping
In 2025-26, national waterways saw cargo traffic grow 49 per cent to 218.24 million tonnes (mt). The target now is to operationalise 20 new waterways over five years. India is also now the world’s largest ship-recycling country, achieving a key target of the Maritime India Vision 2030. India’s global market share was 35.4 per cent as of 2025.
The Shipbuilding Financial Assistance Policy has granted in-principle approval for 288 contracts, covering the construction of 456 vessels. Guidelines have been notified for this scheme and the Shipbuilding Development Scheme, with a combined outlay of Rs 447 billion. There is an asset monetisation target of Rs 2,637 billion for ports under NMP 2.0.
The digital platform, e-Samudra, brings multiple services under a single digital window, enabling online payments, real-time tracking, digital certificates and end-to-end workflows. V.O. Chidambaranar Port, Tuticorin, has introduced a digital twin platform that integrates IoT sensors, GPS, LiDAR, drones and CCTV to provide real-time virtual views of operations.
The Maritime India Vision 2030 targets over 60 per cent renewable energy use, 50 per cent electrification of port equipment, 30 per cent lower CO2 emissions per tonne and 20 per cent lower freshwater consumption per tonne. New Mangalore Port has achieved 100 per cent solar power integration. Deendayal, Paradip and V.O. Chidambaranar ports are setting up green hydrogen hubs.
Railways
Indian Railways (IR) aims to increase its modal share in freight to 45 per cent and reach net zero carbon emissions by 2030. It has also set an asset monetisation target of Rs 2.6 trillion. India’s first hydrogen train was launched this year, with plans to develop the world’s largest 3,100 horsepower hydrogen-fuelled locomotive propulsion system.
The Gati Shakti Multimodal Cargo Terminal network is being expanded. The Kavach 4.0 safety system has been installed on the Delhi-Mumbai and Delhi-Howrah routes. IR is developing Kavach 5.0 for Mumbai’s suburban rail network.
In order to encourage private participation, Indian Railways has proposed changes to its PPP policy, including longer concession periods and more government responsibility for land acquisition. A pipeline of 54 PPP projects worth Rs 1.8 trillion has been identified. Seven new high-speed rail corridors are planned and 1,338 stations are due for modernisation and monetisation.
Roads
The Ministry of Road Transport and Highways (MoRTH) targets Rs 15 trillion of construction over the next two years. The National Highways Authority of India (NHAI) has identified 124 projects spanning 6,376 km for awards in 2025-26 at an estimated cost of Rs 3.45 trillion. However, the first nine months saw project awards of only 2,257 km. The slowdowns are due to procedural delays, issues in transition towards the build-operate-transfer (BOT) toll model, stricter requirements relating to land availability and the conversion of state highways into national highways. Construction has also been slow. During the first nine months of 2025-26, 4,989 km was constructed against the annual target of 10,000 km.
A surge in asset sales and the launch of new InvITs have highlighted investment potential. MoRTH has revised the model concession agreement (MCA) for the BOT toll model. Project awards in the first nine months of FY 2026 were at 2,257 km, while 4,989 km was constructed. Under the Bharatmala Pariyojana, 26,425 km has been awarded and 22,590 km has been constructed. Multimodal logistics parks in Chennai, Indore and Bengaluru are under implementation.
Cumulatively, road monetisation has hit Rs 1.5 trillion, with Rs 238.07 billion mobilised in 2025-26. Under NMP 2.0, road monetisation is expected to yield Rs 4.42 trillion. State highway expansion has accelerated, with Karnataka, Punjab and Telangana at the forefront.
Toll collections reached Rs 702.78 billion in 2025-26. Over Rs 100 billion worth of insurance surety bonds were issued by insurance companies for NHAI contracts. The NHAI-sponsored Raajmarg Infra Investment Trust was listed on the Bombay Stock Exchange. Cube Highways Trust raised Rs 12.5 billion, ahead of its initial public offering.
Telecom
The most consequential policy development was in satellite communications (satcom). The government has decided to allocate satcom spectrum via an administrative, non-auction process. The Telecom Regulatory Authority of India (TRAI) has finalised pricing recommendations. The Department of Telecommunications has notified the draft Telecommunications (Spectrum Assignment by Administrative Process) Rules, 2026. The Telecommunications (Authorisation for Provision of Principal Telecommunication Services) Rules, 2026, have replaced the decades-old licensing regime. The draft rules on administrative spectrum allocation outline how airwaves outside the auction process can be assigned to state-run operators, law enforcement agencies and satellite providers. They propose six network categories that operators can apply for through the e-Services Portal.
Starlink, Jio-SES (operating as Orbit Connect India) and Eutelsat OneWeb have secured satcom licenses, with Starlink and Jio-SES navigating security clearances and awaiting final spectrum allocation. Reliance Jio’s proposal for a constellation of 1,600 low Earth orbit satellites is comparable in scale with global systems.
The Telecommunications (Authorisation for Provision of Principal Telecommunication Services) Rules, 2026, operationalises the Telecommunications Act, 2023. The draft National Telecom Policy, 2025 (NTP-25) is under finalisation. NTP-25 targets 100 per cent 4G and 90 per cent 5G population coverage, fibre connectivity to 80 per cent of towers, 100 million fixed broadband connections, and 1 million public Wi-Fi hotspots by 2030. It aims to double the contribution of information and communication technology to the country’s GDP to 11 per cent, attract annual investments of Rs 1 trillion-Rs 1.5 trillion and create a million new jobs.
Operators are deploying AI-driven network automation and edge computing to diversify revenue. Google has announced a $15 billion, five-year investment in an AI hub in Visakhapatnam in collaboration with Airtel and AdaniConnex. Jio is developing a new subsea cable landing station at Digha, West Bengal.
The targets are ambitious. Tower fiberisation stands at only 36 per cent, far short of the NTP-25 target of 80 per cent. Accelerating fiberisation and resolving right-of-way bottlenecks are key priorities. Domestic R&D spending is currently under 1 per cent of revenue and must scale significantly to support India’s ambitions of being a 6G R&D player. Meanwhile, BharatNet remains behind schedule.
The production-linked incentive scheme has achieved roughly 60 per cent import substitution in critical components. The government is targeting a $25 billion opportunity in component manufacturing. Another important policy move is the tax holiday until 2047 for foreign cloud providers using India-based data centres to serve global markets. Spectrum policy also saw a sweeping change. The National Frequency Allocation Plan 2025 will be the master reference for spectrum use.
The draft National Data Centre Policy offers a tax exemption of up to 20 years. States like Uttar Pradesh and Gujarat have also announced data centre policies. The union cabinet has approved ISM 2.0, a Rs 1.27 trillion initiative, along with the Mobile Phone Manufacturing Scheme, worth Rs 625 billion. The Digital Personal Data Protection (DPDP) Rules, 2025, give full operational effect to the DPDP Act of 2023. The Ministry of Electronics and Information Technology has also released the India AI Governance Guidelines under the IndiaAI mission.
Finance
India is expected to require Rs 800 trillion of infrastructure investment over the next two decades, with annual infrastructure spending rising from Rs 20 trillion to Rs 40 trillion. Ensuring adequate funding will be challenging.
As such, the scale of NMP 2.0 must be massive, and it is. Between 2025-26 and 2029-30, NMP 2.0 will monetise assets worth Rs 16.7 trillion in an ambitious asset-recycling programme. Apart from this, deals have been structured around bonds, debt, equity and mezzanine financing. Asset recovery is robust. Mature MCAs have improved lender confidence. The Infrastructure Risk Guarantee Fund is another step towards reducing early-stage risks.
The Securities and Exchange Board of India (SEBI) has introduced electronic trading through the Request for Quote platform, facilitated retail access through online bond platforms, strengthened governance standards for credit rating agencies and debenture trustees, and streamlined issuance norms.
There are currently 28 SEBI-registered InvITs with aggregated assets under management (AUM) worth over Rs 7 trillion across multiple sectors. InvITs and real estate investment trusts together crossed Rs 9 trillion in AUM.
Devangshu Datta
