The Economic Survey 2025 highlights a significant rebound in infrastructure capital expenditure (capex) following the conclusion of the general elections. While the first quarter of FY25 witnessed a slowdown due to the Model Code of Conduct and weather disruptions, capex surged between July and November 2024, signaling renewed government focus on infrastructure development.
According to the survey, ministries handling infrastructure projects utilized nearly 60% of the budgeted capital expenditure between April and November 2024, outpacing the progress recorded in the same period of FY20, which followed the 17th Lok Sabha elections. As the electoral process settled, capital expenditure saw an uptick in July-November 2024. Capex in infrastructure sectors is expected to gain further momentum in the remaining months of the current fiscal.
The Union Government has placed a strong emphasis on physical, digital, and social infrastructure over the last five years, with capital expenditure growing at a trend rate of 38.8% from FY20 to FY24. Recognizing that public capital alone cannot meet the ambitious goals of Viksit Bharat@2047, the government aims to bolster public-private partnerships (PPPs) to enhance project execution and sustainability.
Road Transport And Logistics Push
The Economic Survey also underlines key initiatives to improve logistics efficiency and road connectivity. These include:
- Advanced Traffic Management System covering 4,000 km of national highways.
- Development of six Multi-Modal Logistics Parks (MMLPs) across major cities, with more in the pipeline.
- A National Highway Maintenance Policy ensuring long-term road upkeep through performance-based contracts.
- Expansion of the vehicle scrapping policy, with 82 operational facilities and 65 more under construction.
- Ongoing ropeway projects in cities like Varanasi, Ujjain, and Dhosi Hill to enhance last-mile connectivity.
With infrastructure investment playing a crucial role in India’s economic trajectory, the government is expected to sustain the capex momentum while encouraging private sector participation to meet the nation’s long-term developmental goals.
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