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World Bank ranks India among top 5 in terms of private investment in infra

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World Bank ranks India among top 5 in terms of private investment in infra
World Bank ranks India among top 5 in terms of private investment in infra

269 million people lifted out of extreme poverty in India over 11 years: World BankIANS

India ranks among the world’s top five nations for private infrastructure investment in low- and middle-income economies, as infrastructure development remains pivotal to its growth agenda, according to the Economic Survey 2025-26 released Thursday. Public capital spending has maintained consistent growth since FY15, supported by multimodal planning frameworks under PM GatiShakti.

The integration of the National Logistics Policy with digital platforms has accelerated progress by lowering transaction costs and project risks, the Survey emphasized. Public capital expenditure surged approximately 4.2-fold between FY18 and FY26, escalating from ₹2.63 lakh crore to ₹11.21 lakh crore (Budget Estimate). Total effective infrastructure investment under BE FY26 stands at ₹15.48 lakh crore, reflecting infrastructure’s critical role as an economic multiplier.

India’s infrastructure funding ecosystem shows increasing diversification beyond traditional bank credit. Non-banking financial companies (NBFCs) expanded commercial sector lending at 43.3% CAGR between FY20-FY25. Road infrastructure recorded significant expansion, with national highways expanding 60% from 91,287 km (FY14) to 1,46,572 km (FY26, till December). High-speed corridors grew tenfold from 550 km to 5,364 km during this period.

Rail network development reached 69,439 route kilometers by March 2025, with 99.1% rail electrification achieved by October 2025. Major railway initiatives include dedicated freight corridors, station modernization programs, and three new economic corridors targeting industrial connectivity.

India’s combined tax-to-GDP ratio has risen to 19.6 per cent, reflecting improved tax compliance and stronger participation by states, according to a Bank of Baroda report. While central tax revenue remains lower, ongoing reforms focused on simplification, digitisation and widening the tax base are expected to drive further gains. The upcoming Income Tax Act, 2025 is likely to boost transparency and formalise more of the informal economy, as tax collections are now growing faster than nominal GDP, signalling healthier revenue buoyancy.IANS

Civil aviation infrastructure witnessed dramatic expansion, with operational airports increasing from 74 (2014) to 164 (2025). Domestic passenger traffic reached 412 million in FY24 and is projected to hit 665 million by FY31. Air cargo volumes expanded from 2.53 million metric tonnes (FY15) to 3.72 MMT (FY25).

Maritime development initiatives like Maritime India Vision 2030 have propelled port efficiency improvements, with seven Indian ports now ranked among the global top 100 for container handling performance. Inland waterways development progressed with 32 operational national waterways spanning 5,155 km, supporting both cargo and passenger services. A ₹69,725 crore shipbuilding revitalization package was approved in September 2025 to strengthen maritime capabilities.

Power generation capacity expanded 11.6% year-on-year to 509.74 GW by November 2025. Renewable energy now constitutes nearly half (49.83%) of total installed capacity, positioning India as the world’s third-largest renewable energy producer and fourth in wind power capacity. Renewable installations tripled over the past decade—from 76.38 GW (March 2014) to 253.96 GW (November 2025)—surpassing the 500 GW clean energy target for 2030.

(With inputs from IANS)

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