Investment and Infrastructure: Keeping IT Going (2024-25) | Indian Economy for UPSC CSE PDF Download

 Page 1


06
CHAPTER
163
INVESTMENT AND 
INFRASTRUCTURE: 
KEEPING IT GOING 
Building infrastructure – physical, digital and social - has been a central focus 
area for the Government in the last five years. This has had various dimensions 
– increase in public spending on infrastructure, creation of institutions to 
de-bottleneck approvals and execution and innovative modes of resource 
mobilisation. In FY25, capital expenditure has gathered momentum post-
elections. 
The government has recognised the importance of continuing the pace of 
infrastructure building and the increasing need to promote sustainable 
construction practices. It is also clear that public capital alone cannot meet the 
demands of upgrading the country’s infrastructure commensurate with the 
requirements of Viksit Bharat@2047. We need to ensure increasing private 
participation in infrastructure by improving their capacity to conceptualise 
projects and their confidence in risk and revenue-sharing mechanisms, contract 
management, conflict resolution and project closure. The efforts of the Union 
Government would need to be supplemented with wholehearted acceptance of 
the need for public-private partnerships in infrastructure across the country. 
Equally important, the private sector must reciprocate, too.  
INTRODUCTION
6.1 India's development aspirations require a substantial investment in infrastructure 
over the next decade. While estimates of the required spending differ in scale
1,2,3,
 there 
is general agreement that current infrastructure spending needs to be increased to 
achieve these objectives. Keeping this in view, the government has laid a special focus 
on infrastructure in the last five years. Reflecting this intent, the capital expenditure by 
the union government on major infrastructure sectors
4
  has been increased at a trend 
rate of 38.8 per cent from FY20 to FY24. 
1   Asian Development Bank (2017). Meeting Asia’s Infrastructure Needs. Manila. https://tinyurl.com/h2668mpb.
2   Athar, S., White, R., & Goyal, H. (2022). Financing India’s urban infrastructure needs: Constraints to commercial 
financing and prospects for policy action. Washington, DC: World Bank. https://hdl.handle.net/10986/38306.
3  CRISIL (2023, October). CRISIL infrastructure yearbook 2023. https://tinyurl.com/36muuvrf.
4  Infrastructure sectors include atomic energy, civil aviation, telecommunications, renewable energy, power, road, 
rural development, ports, housing & urban affairs and railways.
Page 2


06
CHAPTER
163
INVESTMENT AND 
INFRASTRUCTURE: 
KEEPING IT GOING 
Building infrastructure – physical, digital and social - has been a central focus 
area for the Government in the last five years. This has had various dimensions 
– increase in public spending on infrastructure, creation of institutions to 
de-bottleneck approvals and execution and innovative modes of resource 
mobilisation. In FY25, capital expenditure has gathered momentum post-
elections. 
The government has recognised the importance of continuing the pace of 
infrastructure building and the increasing need to promote sustainable 
construction practices. It is also clear that public capital alone cannot meet the 
demands of upgrading the country’s infrastructure commensurate with the 
requirements of Viksit Bharat@2047. We need to ensure increasing private 
participation in infrastructure by improving their capacity to conceptualise 
projects and their confidence in risk and revenue-sharing mechanisms, contract 
management, conflict resolution and project closure. The efforts of the Union 
Government would need to be supplemented with wholehearted acceptance of 
the need for public-private partnerships in infrastructure across the country. 
Equally important, the private sector must reciprocate, too.  
INTRODUCTION
6.1 India's development aspirations require a substantial investment in infrastructure 
over the next decade. While estimates of the required spending differ in scale
1,2,3,
 there 
is general agreement that current infrastructure spending needs to be increased to 
achieve these objectives. Keeping this in view, the government has laid a special focus 
on infrastructure in the last five years. Reflecting this intent, the capital expenditure by 
the union government on major infrastructure sectors
4
  has been increased at a trend 
rate of 38.8 per cent from FY20 to FY24. 
1   Asian Development Bank (2017). Meeting Asia’s Infrastructure Needs. Manila. https://tinyurl.com/h2668mpb.
2   Athar, S., White, R., & Goyal, H. (2022). Financing India’s urban infrastructure needs: Constraints to commercial 
financing and prospects for policy action. Washington, DC: World Bank. https://hdl.handle.net/10986/38306.
3  CRISIL (2023, October). CRISIL infrastructure yearbook 2023. https://tinyurl.com/36muuvrf.
4  Infrastructure sectors include atomic energy, civil aviation, telecommunications, renewable energy, power, road, 
rural development, ports, housing & urban affairs and railways.
Economic Survey 2024-25
164
6.2 The government has also instituted many complementary mechanisms to 
expedite planning, clearances and execution of projects.  The National Infrastructure 
Pipeline (NIP) was launched with a forward-looking approach, targeting a projected 
infrastructure investment of around ?111 lakh crore from FY20 to FY25. The NIP serves 
as a centralised platform for hosting projects of states, union territories and central 
ministries to facilitate their monitoring and review. Currently, it encompasses over 9,766 
projects and schemes across 37 sub-sectors. These projects are tracked and reviewed 
through the integrated India Investment Grid (NIP-Project Monitoring Group) portal. 
6.3 The government is bringing in innovative frameworks for attracting investment in 
infrastructure projects. To boost private investment in brownfield assets, the National 
Monetisation Pipeline (NMP) was launched in August 2021. This initiative laid down 
the framework for monetisation policy and identified a pipeline of potential core 
assets with an indicative value of ?6.0 lakh crore for the period FY22 to FY25
5
. For 
the period FY22 to FY24, against the target of ?4.30 lakh crore, transactions of ?3.86 
lakh crore in terms of accruals or private investments were completed under the core 
asset monetisation. Sector-wise, roads, power, coal, and mines led the performance, 
supported by market-tested models and reforms. For FY25, the aggregate monetisation 
target is set at ?1.91 lakh crore.
6.4 Despite such earnest efforts by the union government and quite a few state 
governments and public sector undertakings supplementing these efforts with increased 
capex, there is still a significant unmet demand for infrastructure development. 
While this is typical of a dynamic, developing economy, India’s goal of Viksit Bharat 
necessitates the progressive filling of this gap with innovative modes of financing and 
greater private participation. This sets the context for the discussion in this chapter.
INFRASTRUCTURE CAPEX IMPROVES POST-ELECTION
6.5 The pace of the Union Government’s capital expenditure in major infrastructure 
sectors
6
  was affected during Q1FY25, largely due to the model code of conduct during 
the general elections. The unusual patterns of the last monsoon season also slowed 
down the progress of work. Hence, a year-over-year comparison may not be appropriate 
for Q1FY25. 
5   NITI Aayog (2021, August 10). Transforming India's mobility: NITI Aayog's initiatives. Government of India. [PIB 
Release]. https://tinyurl.com/4nsnxt5s.
6  Infrastructure sectors include atomic energy, civil aviation, telecommunications, renewable energy, power, road, 
rural development, ports, housing & urban affairs, and railways.
Page 3


06
CHAPTER
163
INVESTMENT AND 
INFRASTRUCTURE: 
KEEPING IT GOING 
Building infrastructure – physical, digital and social - has been a central focus 
area for the Government in the last five years. This has had various dimensions 
– increase in public spending on infrastructure, creation of institutions to 
de-bottleneck approvals and execution and innovative modes of resource 
mobilisation. In FY25, capital expenditure has gathered momentum post-
elections. 
The government has recognised the importance of continuing the pace of 
infrastructure building and the increasing need to promote sustainable 
construction practices. It is also clear that public capital alone cannot meet the 
demands of upgrading the country’s infrastructure commensurate with the 
requirements of Viksit Bharat@2047. We need to ensure increasing private 
participation in infrastructure by improving their capacity to conceptualise 
projects and their confidence in risk and revenue-sharing mechanisms, contract 
management, conflict resolution and project closure. The efforts of the Union 
Government would need to be supplemented with wholehearted acceptance of 
the need for public-private partnerships in infrastructure across the country. 
Equally important, the private sector must reciprocate, too.  
INTRODUCTION
6.1 India's development aspirations require a substantial investment in infrastructure 
over the next decade. While estimates of the required spending differ in scale
1,2,3,
 there 
is general agreement that current infrastructure spending needs to be increased to 
achieve these objectives. Keeping this in view, the government has laid a special focus 
on infrastructure in the last five years. Reflecting this intent, the capital expenditure by 
the union government on major infrastructure sectors
4
  has been increased at a trend 
rate of 38.8 per cent from FY20 to FY24. 
1   Asian Development Bank (2017). Meeting Asia’s Infrastructure Needs. Manila. https://tinyurl.com/h2668mpb.
2   Athar, S., White, R., & Goyal, H. (2022). Financing India’s urban infrastructure needs: Constraints to commercial 
financing and prospects for policy action. Washington, DC: World Bank. https://hdl.handle.net/10986/38306.
3  CRISIL (2023, October). CRISIL infrastructure yearbook 2023. https://tinyurl.com/36muuvrf.
4  Infrastructure sectors include atomic energy, civil aviation, telecommunications, renewable energy, power, road, 
rural development, ports, housing & urban affairs and railways.
Economic Survey 2024-25
164
6.2 The government has also instituted many complementary mechanisms to 
expedite planning, clearances and execution of projects.  The National Infrastructure 
Pipeline (NIP) was launched with a forward-looking approach, targeting a projected 
infrastructure investment of around ?111 lakh crore from FY20 to FY25. The NIP serves 
as a centralised platform for hosting projects of states, union territories and central 
ministries to facilitate their monitoring and review. Currently, it encompasses over 9,766 
projects and schemes across 37 sub-sectors. These projects are tracked and reviewed 
through the integrated India Investment Grid (NIP-Project Monitoring Group) portal. 
6.3 The government is bringing in innovative frameworks for attracting investment in 
infrastructure projects. To boost private investment in brownfield assets, the National 
Monetisation Pipeline (NMP) was launched in August 2021. This initiative laid down 
the framework for monetisation policy and identified a pipeline of potential core 
assets with an indicative value of ?6.0 lakh crore for the period FY22 to FY25
5
. For 
the period FY22 to FY24, against the target of ?4.30 lakh crore, transactions of ?3.86 
lakh crore in terms of accruals or private investments were completed under the core 
asset monetisation. Sector-wise, roads, power, coal, and mines led the performance, 
supported by market-tested models and reforms. For FY25, the aggregate monetisation 
target is set at ?1.91 lakh crore.
6.4 Despite such earnest efforts by the union government and quite a few state 
governments and public sector undertakings supplementing these efforts with increased 
capex, there is still a significant unmet demand for infrastructure development. 
While this is typical of a dynamic, developing economy, India’s goal of Viksit Bharat 
necessitates the progressive filling of this gap with innovative modes of financing and 
greater private participation. This sets the context for the discussion in this chapter.
INFRASTRUCTURE CAPEX IMPROVES POST-ELECTION
6.5 The pace of the Union Government’s capital expenditure in major infrastructure 
sectors
6
  was affected during Q1FY25, largely due to the model code of conduct during 
the general elections. The unusual patterns of the last monsoon season also slowed 
down the progress of work. Hence, a year-over-year comparison may not be appropriate 
for Q1FY25. 
5   NITI Aayog (2021, August 10). Transforming India's mobility: NITI Aayog's initiatives. Government of India. [PIB 
Release]. https://tinyurl.com/4nsnxt5s.
6  Infrastructure sectors include atomic energy, civil aviation, telecommunications, renewable energy, power, road, 
rural development, ports, housing & urban affairs, and railways.
Investment and Infrastructure
165
Chart VI.1: Progress in capital 
expenditure in infrastructure sectors
Chart VI.2: Overall Capex of the 
Union Government
49%
52%
54%
54%
57%
67%
69%
76%
Housing &
Urb an A f fair s
Rura l
Development
Roads
Power
Water &
Sa nitation
Railways
Civil
Aviation
Ports &
Shipping
% of Actuals (Upto Nov) to FY25 (BE ) 
0.60
0.66
Monthly Average:
Q1FY25
Monthly Average:
July-November 2024
? Lakh crore
Source: Monthly Accounts of the Union Government, Controller General of Accounts
6.6 As the electoral process settled, capital expenditure saw an uptick in July-
November 2024 (Chart VI.2). Capex in infrastructure sectors is expected to gain further 
momentum in the remaining months of the current fiscal. On an average, ministries 
related to infrastructure sectors utilised 60 per cent of the budgeted capex during April 
to November 2024. This compares favourably with the progress achieved in the same 
period in FY20 when the 17th Lok Sabha elections were held.
PHYSICAL CONNECTIVITY
6.7 Notwithstanding the electoral timetable, the capacity addition in physical 
connectivity sectors stayed on course during FY25. This section examines developments 
in major components of physical connectivity.  
Railways
6.8 During FY25 so far, the progress in the expansion of the railway network stayed 
at levels comparable to the previous year, while the addition of rolling stock increased 
considerably. Between April and October 2024, 17 new pairs of Vande Bharat trains were 
introduced to the network, and 228 coaches were produced.  The details of progress in 
major railway projects are given in Box VI.1. 
Page 4


06
CHAPTER
163
INVESTMENT AND 
INFRASTRUCTURE: 
KEEPING IT GOING 
Building infrastructure – physical, digital and social - has been a central focus 
area for the Government in the last five years. This has had various dimensions 
– increase in public spending on infrastructure, creation of institutions to 
de-bottleneck approvals and execution and innovative modes of resource 
mobilisation. In FY25, capital expenditure has gathered momentum post-
elections. 
The government has recognised the importance of continuing the pace of 
infrastructure building and the increasing need to promote sustainable 
construction practices. It is also clear that public capital alone cannot meet the 
demands of upgrading the country’s infrastructure commensurate with the 
requirements of Viksit Bharat@2047. We need to ensure increasing private 
participation in infrastructure by improving their capacity to conceptualise 
projects and their confidence in risk and revenue-sharing mechanisms, contract 
management, conflict resolution and project closure. The efforts of the Union 
Government would need to be supplemented with wholehearted acceptance of 
the need for public-private partnerships in infrastructure across the country. 
Equally important, the private sector must reciprocate, too.  
INTRODUCTION
6.1 India's development aspirations require a substantial investment in infrastructure 
over the next decade. While estimates of the required spending differ in scale
1,2,3,
 there 
is general agreement that current infrastructure spending needs to be increased to 
achieve these objectives. Keeping this in view, the government has laid a special focus 
on infrastructure in the last five years. Reflecting this intent, the capital expenditure by 
the union government on major infrastructure sectors
4
  has been increased at a trend 
rate of 38.8 per cent from FY20 to FY24. 
1   Asian Development Bank (2017). Meeting Asia’s Infrastructure Needs. Manila. https://tinyurl.com/h2668mpb.
2   Athar, S., White, R., & Goyal, H. (2022). Financing India’s urban infrastructure needs: Constraints to commercial 
financing and prospects for policy action. Washington, DC: World Bank. https://hdl.handle.net/10986/38306.
3  CRISIL (2023, October). CRISIL infrastructure yearbook 2023. https://tinyurl.com/36muuvrf.
4  Infrastructure sectors include atomic energy, civil aviation, telecommunications, renewable energy, power, road, 
rural development, ports, housing & urban affairs and railways.
Economic Survey 2024-25
164
6.2 The government has also instituted many complementary mechanisms to 
expedite planning, clearances and execution of projects.  The National Infrastructure 
Pipeline (NIP) was launched with a forward-looking approach, targeting a projected 
infrastructure investment of around ?111 lakh crore from FY20 to FY25. The NIP serves 
as a centralised platform for hosting projects of states, union territories and central 
ministries to facilitate their monitoring and review. Currently, it encompasses over 9,766 
projects and schemes across 37 sub-sectors. These projects are tracked and reviewed 
through the integrated India Investment Grid (NIP-Project Monitoring Group) portal. 
6.3 The government is bringing in innovative frameworks for attracting investment in 
infrastructure projects. To boost private investment in brownfield assets, the National 
Monetisation Pipeline (NMP) was launched in August 2021. This initiative laid down 
the framework for monetisation policy and identified a pipeline of potential core 
assets with an indicative value of ?6.0 lakh crore for the period FY22 to FY25
5
. For 
the period FY22 to FY24, against the target of ?4.30 lakh crore, transactions of ?3.86 
lakh crore in terms of accruals or private investments were completed under the core 
asset monetisation. Sector-wise, roads, power, coal, and mines led the performance, 
supported by market-tested models and reforms. For FY25, the aggregate monetisation 
target is set at ?1.91 lakh crore.
6.4 Despite such earnest efforts by the union government and quite a few state 
governments and public sector undertakings supplementing these efforts with increased 
capex, there is still a significant unmet demand for infrastructure development. 
While this is typical of a dynamic, developing economy, India’s goal of Viksit Bharat 
necessitates the progressive filling of this gap with innovative modes of financing and 
greater private participation. This sets the context for the discussion in this chapter.
INFRASTRUCTURE CAPEX IMPROVES POST-ELECTION
6.5 The pace of the Union Government’s capital expenditure in major infrastructure 
sectors
6
  was affected during Q1FY25, largely due to the model code of conduct during 
the general elections. The unusual patterns of the last monsoon season also slowed 
down the progress of work. Hence, a year-over-year comparison may not be appropriate 
for Q1FY25. 
5   NITI Aayog (2021, August 10). Transforming India's mobility: NITI Aayog's initiatives. Government of India. [PIB 
Release]. https://tinyurl.com/4nsnxt5s.
6  Infrastructure sectors include atomic energy, civil aviation, telecommunications, renewable energy, power, road, 
rural development, ports, housing & urban affairs, and railways.
Investment and Infrastructure
165
Chart VI.1: Progress in capital 
expenditure in infrastructure sectors
Chart VI.2: Overall Capex of the 
Union Government
49%
52%
54%
54%
57%
67%
69%
76%
Housing &
Urb an A f fair s
Rura l
Development
Roads
Power
Water &
Sa nitation
Railways
Civil
Aviation
Ports &
Shipping
% of Actuals (Upto Nov) to FY25 (BE ) 
0.60
0.66
Monthly Average:
Q1FY25
Monthly Average:
July-November 2024
? Lakh crore
Source: Monthly Accounts of the Union Government, Controller General of Accounts
6.6 As the electoral process settled, capital expenditure saw an uptick in July-
November 2024 (Chart VI.2). Capex in infrastructure sectors is expected to gain further 
momentum in the remaining months of the current fiscal. On an average, ministries 
related to infrastructure sectors utilised 60 per cent of the budgeted capex during April 
to November 2024. This compares favourably with the progress achieved in the same 
period in FY20 when the 17th Lok Sabha elections were held.
PHYSICAL CONNECTIVITY
6.7 Notwithstanding the electoral timetable, the capacity addition in physical 
connectivity sectors stayed on course during FY25. This section examines developments 
in major components of physical connectivity.  
Railways
6.8 During FY25 so far, the progress in the expansion of the railway network stayed 
at levels comparable to the previous year, while the addition of rolling stock increased 
considerably. Between April and October 2024, 17 new pairs of Vande Bharat trains were 
introduced to the network, and 228 coaches were produced.  The details of progress in 
major railway projects are given in Box VI.1. 
Economic Survey 2024-25
166
Chart VI.3: Commissioning  
of railway network
Chart VI.4: Increase in production of 
wagons and locomotives
2,282 km
2,031km
FY24 FY25
April-Nov
22042
968
26148
1042
Wagon Locomotives
Numbers
(Apr-Nov) FY24 (Apr-Nov) FY25
Source: Ministry of Railways
Chart VI.5: Cumulative no. of Vande 
Bharat trains
Chart VI.6: Cumulative production of 
Vande Bharat coaches
2
10
51
68
No. of Vande Bharat Trains (Pairs)
Numbers
2018-22 FY23 FY24 FY25 (Upto Oct)
32
216
672
900
Production of Vande Bharat Coaches (Units)
Numbers
2018-22 FY23 FY24 FY25 (Upto Oct)
Source: Ministry of Railways
Box VI.1: Recent developments in railways
Recent initiatives in the rail system
• Gati shakti multi-modal Cargo Terminal (GCT): 91 GCTs commissioned and 234 
locations approved by October 31, 2024.
• Net zero carbon emission: Indian Railways targets 30 GW of renewable energy by 
2029-30, with 375 MW of solar and 103 MW of wind commissioned as of October 2024.
• Major economic corridors: 434 projects valued at ?11.17 lakh crore have been 
identified under three railway corridors, mapped on the PM GatiShakti portal.
Page 5


06
CHAPTER
163
INVESTMENT AND 
INFRASTRUCTURE: 
KEEPING IT GOING 
Building infrastructure – physical, digital and social - has been a central focus 
area for the Government in the last five years. This has had various dimensions 
– increase in public spending on infrastructure, creation of institutions to 
de-bottleneck approvals and execution and innovative modes of resource 
mobilisation. In FY25, capital expenditure has gathered momentum post-
elections. 
The government has recognised the importance of continuing the pace of 
infrastructure building and the increasing need to promote sustainable 
construction practices. It is also clear that public capital alone cannot meet the 
demands of upgrading the country’s infrastructure commensurate with the 
requirements of Viksit Bharat@2047. We need to ensure increasing private 
participation in infrastructure by improving their capacity to conceptualise 
projects and their confidence in risk and revenue-sharing mechanisms, contract 
management, conflict resolution and project closure. The efforts of the Union 
Government would need to be supplemented with wholehearted acceptance of 
the need for public-private partnerships in infrastructure across the country. 
Equally important, the private sector must reciprocate, too.  
INTRODUCTION
6.1 India's development aspirations require a substantial investment in infrastructure 
over the next decade. While estimates of the required spending differ in scale
1,2,3,
 there 
is general agreement that current infrastructure spending needs to be increased to 
achieve these objectives. Keeping this in view, the government has laid a special focus 
on infrastructure in the last five years. Reflecting this intent, the capital expenditure by 
the union government on major infrastructure sectors
4
  has been increased at a trend 
rate of 38.8 per cent from FY20 to FY24. 
1   Asian Development Bank (2017). Meeting Asia’s Infrastructure Needs. Manila. https://tinyurl.com/h2668mpb.
2   Athar, S., White, R., & Goyal, H. (2022). Financing India’s urban infrastructure needs: Constraints to commercial 
financing and prospects for policy action. Washington, DC: World Bank. https://hdl.handle.net/10986/38306.
3  CRISIL (2023, October). CRISIL infrastructure yearbook 2023. https://tinyurl.com/36muuvrf.
4  Infrastructure sectors include atomic energy, civil aviation, telecommunications, renewable energy, power, road, 
rural development, ports, housing & urban affairs and railways.
Economic Survey 2024-25
164
6.2 The government has also instituted many complementary mechanisms to 
expedite planning, clearances and execution of projects.  The National Infrastructure 
Pipeline (NIP) was launched with a forward-looking approach, targeting a projected 
infrastructure investment of around ?111 lakh crore from FY20 to FY25. The NIP serves 
as a centralised platform for hosting projects of states, union territories and central 
ministries to facilitate their monitoring and review. Currently, it encompasses over 9,766 
projects and schemes across 37 sub-sectors. These projects are tracked and reviewed 
through the integrated India Investment Grid (NIP-Project Monitoring Group) portal. 
6.3 The government is bringing in innovative frameworks for attracting investment in 
infrastructure projects. To boost private investment in brownfield assets, the National 
Monetisation Pipeline (NMP) was launched in August 2021. This initiative laid down 
the framework for monetisation policy and identified a pipeline of potential core 
assets with an indicative value of ?6.0 lakh crore for the period FY22 to FY25
5
. For 
the period FY22 to FY24, against the target of ?4.30 lakh crore, transactions of ?3.86 
lakh crore in terms of accruals or private investments were completed under the core 
asset monetisation. Sector-wise, roads, power, coal, and mines led the performance, 
supported by market-tested models and reforms. For FY25, the aggregate monetisation 
target is set at ?1.91 lakh crore.
6.4 Despite such earnest efforts by the union government and quite a few state 
governments and public sector undertakings supplementing these efforts with increased 
capex, there is still a significant unmet demand for infrastructure development. 
While this is typical of a dynamic, developing economy, India’s goal of Viksit Bharat 
necessitates the progressive filling of this gap with innovative modes of financing and 
greater private participation. This sets the context for the discussion in this chapter.
INFRASTRUCTURE CAPEX IMPROVES POST-ELECTION
6.5 The pace of the Union Government’s capital expenditure in major infrastructure 
sectors
6
  was affected during Q1FY25, largely due to the model code of conduct during 
the general elections. The unusual patterns of the last monsoon season also slowed 
down the progress of work. Hence, a year-over-year comparison may not be appropriate 
for Q1FY25. 
5   NITI Aayog (2021, August 10). Transforming India's mobility: NITI Aayog's initiatives. Government of India. [PIB 
Release]. https://tinyurl.com/4nsnxt5s.
6  Infrastructure sectors include atomic energy, civil aviation, telecommunications, renewable energy, power, road, 
rural development, ports, housing & urban affairs, and railways.
Investment and Infrastructure
165
Chart VI.1: Progress in capital 
expenditure in infrastructure sectors
Chart VI.2: Overall Capex of the 
Union Government
49%
52%
54%
54%
57%
67%
69%
76%
Housing &
Urb an A f fair s
Rura l
Development
Roads
Power
Water &
Sa nitation
Railways
Civil
Aviation
Ports &
Shipping
% of Actuals (Upto Nov) to FY25 (BE ) 
0.60
0.66
Monthly Average:
Q1FY25
Monthly Average:
July-November 2024
? Lakh crore
Source: Monthly Accounts of the Union Government, Controller General of Accounts
6.6 As the electoral process settled, capital expenditure saw an uptick in July-
November 2024 (Chart VI.2). Capex in infrastructure sectors is expected to gain further 
momentum in the remaining months of the current fiscal. On an average, ministries 
related to infrastructure sectors utilised 60 per cent of the budgeted capex during April 
to November 2024. This compares favourably with the progress achieved in the same 
period in FY20 when the 17th Lok Sabha elections were held.
PHYSICAL CONNECTIVITY
6.7 Notwithstanding the electoral timetable, the capacity addition in physical 
connectivity sectors stayed on course during FY25. This section examines developments 
in major components of physical connectivity.  
Railways
6.8 During FY25 so far, the progress in the expansion of the railway network stayed 
at levels comparable to the previous year, while the addition of rolling stock increased 
considerably. Between April and October 2024, 17 new pairs of Vande Bharat trains were 
introduced to the network, and 228 coaches were produced.  The details of progress in 
major railway projects are given in Box VI.1. 
Economic Survey 2024-25
166
Chart VI.3: Commissioning  
of railway network
Chart VI.4: Increase in production of 
wagons and locomotives
2,282 km
2,031km
FY24 FY25
April-Nov
22042
968
26148
1042
Wagon Locomotives
Numbers
(Apr-Nov) FY24 (Apr-Nov) FY25
Source: Ministry of Railways
Chart VI.5: Cumulative no. of Vande 
Bharat trains
Chart VI.6: Cumulative production of 
Vande Bharat coaches
2
10
51
68
No. of Vande Bharat Trains (Pairs)
Numbers
2018-22 FY23 FY24 FY25 (Upto Oct)
32
216
672
900
Production of Vande Bharat Coaches (Units)
Numbers
2018-22 FY23 FY24 FY25 (Upto Oct)
Source: Ministry of Railways
Box VI.1: Recent developments in railways
Recent initiatives in the rail system
• Gati shakti multi-modal Cargo Terminal (GCT): 91 GCTs commissioned and 234 
locations approved by October 31, 2024.
• Net zero carbon emission: Indian Railways targets 30 GW of renewable energy by 
2029-30, with 375 MW of solar and 103 MW of wind commissioned as of October 2024.
• Major economic corridors: 434 projects valued at ?11.17 lakh crore have been 
identified under three railway corridors, mapped on the PM GatiShakti portal.
Investment and Infrastructure
167
• Public Private Partnership (PPP): 17 projects have been completed (?16,434 crore) 
and 8 ongoing (?16,614 crore) under the PPP model.
Major projects 
• Mumbai-Ahmedabad High-Speed Rail Project: Sanctioned in December 2015, this 
508 km project, supported by Japan, has a revised cost of ?1.08 lakh crore. As of October 
2024, it has achieved 47.17 per cent physical progress with an expenditure of ?67,486 
crore. 
• Dedicated Freight Corridors (DFCs): As of November 2024, 2,741 km (96.4 per 
cent) of the planned 2,843 km DFC network has been commissioned. DFCs have 
transformed logistics in India by facilitating increased freight volumes without passenger 
train interference.
6.9 The focus on railway station infrastructure and modernisation of locomotives and 
coaching stock have improved passenger amenities in the railway sector (Box VI.2).
Box VI.2: Steps for enhancing passenger amenities in railways
Indian Railways is undertaking several initiatives to enhance passenger experience and 
station amenities. Key projects mainly focus on station redevelopment, affordable healthcare, 
improving catering services and supporting local artisans.
• Amrit Bharat Station Scheme: Under this initiative, aimed at enhancing railway 
station amenities, 1337 stations have been identified for redevelopment; work has started 
in 1197 of them. 
• Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs): In the pursuit to 
enhance the wellness and welfare of passengers passing through railway stations, 50 
PMBJKs were started in railway station premises. In addition, on November 13, 2024, 18 
new PMBJKs were inaugurated, providing affordable medications and healthcare services 
at railway stations.
• Food and catering services: A new policy for managing mobile catering was introduced 
on November 14, 2023. As of November 23, 2024, this has resulted in the establishment 
of 557 Base Kitchens servicing 468 pairs of trains. 
• One Station One Product Scheme: This scheme is operational at 1,900 stations, 
featuring 2,163 outlets that benefit 79,380 local artisans by providing sales opportunities 
for their products. 
• Passenger amenities: Train Indication Boards have been provided at 1,351 stations, 
Coach Guidance Systems at 866 stations, and Wi-Fi availability at 6,112 stations, 
enhancing passenger experience.