Govt infra spending rises, but pvt sector participation limited

India continues to face significant infrastructure development challenges despite extensive government efforts, according to the 2024-25 Economic Survey presented to Parliament on Friday.

- Soumya Chatterjee

NEW DELHI: The survey highlights that while the union government's capital expenditure on major infrastructure sectors has grown at a trend rate of 38.8% from FY20 to FY24, private sector participation remains limited in core sectors.

"India needs a continued step-up of infrastructure investment over the next two decades to sustain a high rate of growth," the report emphasises. The government's National Monetisation Pipeline (NMP) initiative has achieved transactions worth ₹3.86 lakh crore against a target of ₹4.30 lakh crore for FY22-24.

Average monthly capital expenditure declined to ₹0.60 lakh crore in Q1 FY25 from ₹0.66 lakh crore during July-November 2024. The slowdown was attributed to the model code of conduct during general elections and heavy monsoons affecting infrastructure spending, though the report notes improved recovery compared to the 2019 election period.