The Modi administration is set to boost the Pradhan Mantri Gram Sadak Yojana (PMGSY) with an expected 10% increase in the budget for FY 2025-26. This move aims to expand rural road connectivity, acknowledging the significant economic impact of infrastructure investment. With the government’s focus on improving roads in rural India, this top-up is part of a broader effort to enhance connectivity in remote areas.
Rural Roads: A Key Focus for the Modi Government
The PMGSY scheme is a cornerstone of the government’s rural development agenda. Under the fourth phase of the program, the government plans to build 62,500 km of rural roads over five years, connecting 25,000 habitations. This ambitious target builds on previous phases, which have already sanctioned or planned rural road projects.
In the current fiscal year, the PMGSY received a budget allocation of Rs 16,100 crore, an increase from Rs 14,800 crore in FY 2024. The budget hike underscores the importance of rural infrastructure to the broader economic recovery. Rural road development has been proven to stimulate economic growth, create jobs, and alleviate poverty.
Investment in Remote Connectivity
The rural roads initiative is designed to significantly improve road access to underserved regions, enabling better transport of goods and services, and fostering local economies. In September 2024, the government approved a Rs 70,125 crore package for the fourth phase of the PMGSY, set to span five years.
Key Progress and Future Plans
As part of this initiative, 6,614 km of rural roads have already been sanctioned for construction, with 3,380 km of roads planned for West Bengal alone. Rural Development Minister Shivraj Singh Chouhan has highlighted these developments, noting the positive impact of enhanced connectivity on local communities.
Rural Infrastructure Driving Growth
The government’s commitment to rural infrastructure comes at a time when the need for economic stimulation in rural areas is more pressing than ever. By improving roads, the government aims to create a ripple effect that will fuel growth, increase mobility, and reduce regional disparities. The expected increase in PMGSY’s budget reflects this strategic vision.
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