Public infrastructure has served as the backbone of economic development over the past few decades. Acknowledging this, the capital outlay for infrastructure rose to Rs 11,210 billion in the Union Budget 2025-26. As public spending on infrastructure scales new heights, there is a parallel push to harness the transformative power of digital technologies to maximise the impact and longevity of these investments. At the same time, the digitalisation of cities, transportation, energy, utilities and communication systems is unlocking numerous benefits, ranging from improved service delivery and governance to enhanced sustainability and quality of life.
Engineering multimodal efficiency
Digital technologies are redefining infrastructure operations in India, streamlining tasks and enhancing responsiveness. The aviation sector is optimising turnaround and passenger services through digitalisation. In January 2025, Air India became the first airline to roll out in-flight internet services on domestic routes. Cost containment, however, will remain critical in a price-sensitive market. Further, Delhi International Airport’s unified total airside management system, introduced in March 2025, monitors airside activities and enforces speed regulations, reducing delays. It also introduced virtual information kiosks at Terminals I and III, offering real-time assistance to travellers. Further, in May 2025, Cochin International Airport Limited (CIAL) unveiled CIAL 2.0. Key upgrades include contactless full-body scanners, automated tray retrieval systems, Artificial Intelligence (AI)-enabled surveillance, shared-use airline counters, AI-based baggage tracking, and a next-generation data centre powered by hyper-converged infrastructure. To offer a global perspective, a report by SITA found that the number of mishandled bags globally dropped from 33.8 million in 2023 to 33.4 million in 2024, thanks to the implementation of AI-powered analytics, baggage tracking in real time and self-service systems at airports. This is a 67 per cent dip since 2007. Subsequently, in July 2025, Adani Airports Holdings Limited introduced a digital platform that allows passengers across its eight airports to book lounge services directly, simplifying access to amenities and promoting inclusive, tech-enabled air travel across urban and regional hubs.
Meanwhile, in the railway sector, Indian Railways has embarked on significant modernisation. For instance, South Western Railway’s AI-integrated communication system, unveiled in April 2025, leverages real-time surveillance, uninterrupted connectivity and intelligent data integration across trains and stations. In addition, the Ministry of Railways introduced RailOne in July 2025 to make commuting a seamless experience for passengers. RailOne is an application that allows customers to book unreserved tickets, buy platform tickets, track trains in real time, order meals, reserve a porter and book a taxi from the station to the final destination. Parallelly, Indian metro rails are adopting advanced technologies to drive efficiency and commuter ease. For example, January 2025 witnessed the launch of the “Singara Chennai” smart card for cashless commuting on buses and trains not only in Chennai but also in Delhi and Bengaluru. In July 2025, Bangalore Metro Rail Corporation Limited (BMRCL) entered into a 13-year licensing agreement with ACES India Private Limited to deploy and manage telecom infrastructure, aiming to enhance mobile connectivity throughout Phase II of Bengaluru’s Namma Metro.
The road sector, too, is enjoying the benefits of digital technologies. In May 2025, for instance, a total of 12 smart roads developed under the Kerala Road Fund Board were inaugurated in Thiruvananthapuram. Some of the features of these roads include state-of-the-art street lighting, cycle tracks, tiled footpaths, modern stormwater drains, underground ducts for laying electrical cables and distinct spaces for water and sewage lines.
Similarly, the ports and logistics sectors are enhancing operational agility. Kerala’s Vizhinjam port, inaugurated in May 2025, is India’s first fully automated port. Equipped with radar-based sensors and AI, it optimises turnaround time and ensures navigational safety. Building momentum, in June 2025, the Indian government launched the Sagar Setu platform to provide seamless export-import-related services and diminish processing times for vessel and cargo documentation. According to the Associated Chambers of Commerce and Industry of India, more than 80 per cent of warehouses will incorporate some degree of automation. A case in point is DP World, which banks on cutting-edge technologies like AI and blockchain for inventory planning and augmenting transparency and security across the supply chain.
In the utilities sector, too, digitalisation is leaving its mark and augmenting efficacy. Approved in April 2025, the government’s Modernisation of Command Area Development and Water Management programme aims to improve irrigation efficiency by incorporating internet of things (IoT)-and supervisory control and data acquisition-based controls across large canal networks. Meanwhile, the Hyderabad Metropolitan Water Supply and Sewerage Board is using automation to improve operations, auditing and water quality. Smart valve systems and geographic information system mapping are enhancing operational oversight. During April 2025, Indian Oil Corporation Limited launched Project SPRINT, ensuring the company is future-ready in the evolving global energy landscape. This project includes integrating technology and innovation. Shell Global, too, is tapping into AI, traceability and telematics to predict product innovation cycles.
Building resilience with smart tech
Digital technologies are not just about speed – they are also making infrastructure safer. Estimates suggest that road accidents cause over 0.17 million fatalities annually, and in 2024-25, the number of consequential train accidents stood at 31. In addition to mitigating catastrophic incidents that can lead to serious injuries and loss of life, resilience also needs to be built for new kinds of threats like malicious cyber threat vectors across sectors.
The aviation sector is taking measures in terms of ensuring passenger safety, although recent incidents such as the Air India crash may mar traveller confidence. In April 2025, the smart visual docking guidance system (S-VDGS), which was developed two years ago to help pilots park their aircraft safely at airports, was tested in Kolkata (47 units) and put into service. The S-VDGS directs pilots from the taxiway to the halt position in the apron’s parking bays, either adjacent to the integrated terminal building or in remote bays. The system is expected to also be commissioned in Chennai (31 units), Bhubaneswar (11 units), Chandigarh (10 units), Pune (10 units), Patna (six units), Goa (three units), Srinagar (three units) and Trichi (one unit).
The railway sector, too, is leveraging digitisation to prevent rail accidents. In June 2025, HBL Engineering Limited won a contract worth Rs 1.32 billion for Kavach from South Central Railway. The deal covered 48 stations with 10 locomotives and 446 km of track. The indigenous Kavach automatic train protection system enhances safety by automatically applying brakes if speed limits are breached and preventing collisions through GPS and radio communication between trains on the same track. It has a radio frequency identification (RFID) technology, RFID readers, radio infrastructure (towers and modems at railway stations) and cabin instrument panels to show signals and speed limits. Similarly, in May 2025, BMRCL rolled out an advanced AI-based CCTV surveillance system across six stations on the Purple Line to detect security-related anomalies in real time.
Integrating smart solutions into road networks can significantly enhance safety, improve traffic flow and create a safer travel experience for all, which can help achieve the government’s aim to reduce road accidents and fatalities by half by 2030. In June 2025, Delhi’s Dwarka Expressway launched the country’s first AI-powered advanced traffic management system (ATMS). The ATMS is equipped with features like traffic monitoring cameras, video incident detection and enforcement systems like detection capabilities which can notify seat-belt non-compliance, triple riding incidents and speed limit breaches. This move could set a precedent for the pan-Indian implementation of an AI-powered traffic management system, as discussions on this theme are reportedly under way at the Ministry of Road Transport and Highways.
The ports and logistics sectors are echoing this trend. In July 2025, Visakhapatnam port received a major push with an infrastructure funding of Rs 2.76 billion. The fund comprises a digital component – the installation of a vessel traffic management system. This is a state-of-the-art system to bolster navigational safety and port efficiency. Further, Nestle’s distribution centre in Bhiwandi, Maharashtra, features a digital twin. Launched in May 2025, this centre has AI-enabled CCTVs, an operations command hub, digital rack inspection systems and sensor-fitted material handling equipment.
In utilities infrastructure, after falling prey to a cyberattack in April 2025, the Bangalore Water Supply and Sewerage Board is reportedly mulling the deployment of blockchain technology to strengthen digital security. Meanwhile, in the oil and gas industry, Cairn Oil & Gas Vedanta is implementing zero-trust architecture to keep phishing attacks at bay.
Green shoots of decarbonisation
Various sectors have started adopting technologies for a greener future. For instance, the Delhi International Airport has expanded its fleet of taxibots to cut its fuel consumption. Meanwhile, roads account for over 90 per cent of the total carbon emissions generated by the transportation sector in the country. In March 2025, the Madhya Pradesh government announced plans to make Indore a “signal-free city” by transitioning to AI-powered intelligent traffic management systems. This is expected to bring down road accidents and traffic congestion in the city. Studies have found that reducing road congestion can reduce the sector’s carbon footprint. For example, according to international research, reducing congestion could potentially cut emissions by 0.95 million tonnes (mt) (12.7 per cent), 1.53 mt (14.2 per cent) and 0.98 mt (12.9 per cent) of CO2 in the Chinese cities of Suzhou, Chengdu and Harbin respectively.
In July 2025, Siemens won two orders worth Rs 7.73 billion to provide signalling and telecom technology to the Nagpur Metro Rail. Siemens expects this technology to enable 100 per cent punctuality, energy savings and optimised headways while ensuring safety across the metro network.
In the ports and logistics sectors, the roll-out of the “One Nation-One Port Process” in February 2025 condensed container operation documents by 33 per cent and bulk cargo documents by 29 per cent. In addition to creating operational efficiency, this move is expected to cut the carbon footprint of the sector by trimming its paper trail. This is crucial as the dwell time for export processes ranges from 46.3 hours to 149.4 hours across different Indian ports. Further, India is leveraging its bilateral ties with several trade partners, including the Netherlands, Singapore and Norway, to make its ports green and digital.
Lastly, nearly four dozen local dyeing facilities received a final warning from the Punjab Pollution Control Board in May 2025 to either switch to zero liquid discharge technology by the end of the year or relocate their operations outside the city.
Tech-driven future on the horizon
As India targets a $5 trillion economy, digital technologies such as AI, IoT and blockchain are becoming central to infrastructure development. Smart highways, automated ports and integrated urban mobility systems will no longer be aspirational – they will be foundational to government programmes like PM Gati Shakti and the National Infrastructure Pipeline. The success of these efforts, however, hinges on sustained policy support, investments in digital capacity building and public-private collaboration. As technology becomes the backbone of infrastructure, the true gains will lie in India’s ability to scale these pilots into nationwide platforms – turning innovation into impact.
