India ramps up infrastructure spending on highways, railways and semiconductors to sustain growth

New Delhi, June 12 (IANS) India is significantly expanding public investment in infrastructure, with government spending on highways, railways and semiconductor manufacturing nearly doubling over the past five years as the country seeks to support economic growth and attract private capital, a report has said.

Public works expenditure reached Rs 11 trillion in FY25, which ended on March 31, and the government has earmarked a record Rs 12.2 trillion for FY26, according to Nikkei Asia report.

The investment push comes as India’s economy recorded 7.7 per cent growth in FY25, driven by both infrastructure spending and resilient consumer demand.

A major focus area has been road development. The government is accelerating the construction of national highways to meet rising transportation needs in a rapidly urbanising economy.

One of the flagship projects is the Rs 360-billion Ganga Expressway in Uttar Pradesh, a 594-kilometre corridor running along the Ganges basin.

The project, which began construction in 2021, is expected to improve connectivity and support economic activity across the region.

Prime Minister Narendra Modi, while inaugurating a section of the expressway in April, described the project as a new lifeline for the state’s development, drawing parallels with the historical importance of the Ganges River.

Rail infrastructure is also witnessing a major transformation. Construction of the Mumbai-Ahmedabad high-speed rail corridor, India’s first bullet train project, has progressed substantially, with more than 80 per cent of the work reportedly completed.

The approximately 500-kilometre route is being developed with significant financial support from Japan, which is funding around 80 per cent of the project cost through concessional yen loans.

India plans to begin partial operations on the corridor by August 2027, while next-generation E10 series trains currently under development in Japan are expected to be introduced in the early 2030s, the report said.

The government is also using infrastructure investments to strengthen the country’s manufacturing base, particularly in the semiconductor sector.

Under the Make in India initiative, New Delhi has identified chip manufacturing as a strategic industry and is providing incentives to attract global investment, as per the report.

–IANS

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