Enabling InvITs to power India’s growth

Building a Viksit Bharat through infrastructure 

India’s vision of becoming a $7 trillion economy by 2030 and a $30 trillion economy by 2047 hinges on the growth-multiplier impact of infrastructure. 

Therefore, the government is proactively pushing for a robust and modern infrastructure framework, which can spur the country’s growth through rapid urbanisation and industrialisation and enhance global competitiveness. 

The government’s capital investment outlay for infrastructure was Rs 11.21 lakh crore, or 3.1% of gross domestic product (GDP), in budget 2026-up sharply compared with 1.7% of GDP over fiscals 2016-2020. 

Investment in rural roads, highways, airports and railways to improve physical connectivity and reduce logistics cost has pushed gross fixed capital formation to 30.1% in fiscal 2025 from 27.3% of GDP in fiscal 2021. 

The planned impetus reflects a clear understanding that infrastructure not merely facilitates economic activity but also acts as a catalyst for growth. The construction of highways, for instance, stimulates the economy through job creation and enhanced transit efficiency. Similarly, the expansion of public digital infrastructure, clean energy projects and resilient urban systems are essential to improve the quality of life and position India as a leading global economic player. 

That strategic focus has taken India’s ranking in the World Bank’s Logistics Performance Index (LPI) to 38 in 2023 from 54 in 2014.