NEW DELHI: The Modi government has consistently ramped up capital expenditure – Government capex – over the past five years to offset declining private sector investments.
Minister of State for Finance Pankaj Chaudhary highlighted on Friday that government capex has more than doubled, rising from Rs5.54 lakh crore in 2021-22 to Rs11.11 lakh crore in 2024-25.
“India’s road, rail, and air connectivity has seen transformative improvement in the last decade due to focused infrastructure development,” Chaudhary said. He added that the government’s commitment to making India a developed nation by 2047, as envisioned by Prime Minister Narendra Modi, is reflected in robust budget allocations.
Bridging investment gap
Private sector investments, which accounted for nearly half of India’s total investments a decade ago, have dropped to just a quarter by 2023. To bridge this gap, the government has stepped in with a sustained surge in capital spending.
Infrastructure development, from highways to railways and airports, has become the backbone of India’s growth strategy, addressing both connectivity and employment needs.
Vision 2047
According to Niti Aayog’s Vision for Viksit Bharat @ 2047, India aims to achieve high-income status by the centenary of its independence. The plan envisions a $30 trillion economy with a per capita income of $18,000 annually by 2047.
To meet these targets, India’s GDP would need to grow nine-fold from the current $3.36 trillion, and per capita income would have to rise eight-fold from $2,392 annually. Achieving this will require both continued government-led infrastructure spending and a revival of private sector investment to create a balanced and sustainable growth trajectory.
As Chaudhary reiterated, the Modi government will continue prioritising capital investment in the upcoming 2025-26 Budget to ensure progress toward these ambitious goals.
