Archive · 20 Jul 2026
India's Infrastructure Spending Surges Fivefold Since 2014
The Indian government has significantly increased its spending on infrastructure since 2014.
The total spending from 2014 to 2026 is nearly ₹91 trillion, which is more than five times the amount spent from 2004 to 2014.
This includes both direct spending by the central government and grants given to states for projects like building schools and houses.
The government believes this spending helps the economy grow by improving roads, railways, and other infrastructure, which creates jobs and makes it easier for businesses to operate.
However, some experts say that while the spending is good, the government needs to make sure the projects are completed efficiently to get the best results.
The government plans to continue this focus on infrastructure spending in the future.
India's infrastructure spending has surged fivefold since 2014, reaching nearly ₹91 trillion.
The government's capital expenditure includes direct spending and grants to states for projects like schools and houses.
Capital expenditure as a percentage of GDP has increased from 1.6% in 2014-15 to 3.2% in 2023-24 and 2024-25.
The government plans to continue prioritizing infrastructure spending through budgetary allocations and support to states.
Experts believe this spending drives economic growth, improves connectivity, and creates jobs, but execution remains critical.
- Who
- Prime Minister Narendra Modi's government
- What
- Increased infrastructure spending by more than five times since 2014
- When
- From 2014 to 2026
- Where
- India
- Why
- To drive economic growth and infrastructure creation through public investment
Government's Infrastructure Investment Strategy
Critics' Concerns
Economic Growth and Employment
Government's Infrastructure Investment Strategy
The government's increased infrastructure spending has driven economic growth, improved connectivity, reduced logistics costs, and created jobs.
Critics' Concerns
Critics argue that while the spending is substantial, the execution and efficiency of these projects need improvement to ensure maximum benefits.
Public vs. Private Investment
Government's Infrastructure Investment Strategy
The government emphasizes that public investment in infrastructure creates conditions for higher productivity and private investment.
Critics' Concerns
Some experts believe that private sector involvement should be increased to ensure sustainable and efficient infrastructure development.
- Total Infrastructure Spending (2014-26)
- ₹90.87 trillion
- Total Infrastructure Spending (2004-14)
- ₹17.04 trillion
- Centre's Direct Capital Expenditure (2014-26)
- ₹64.70 trillion
- Grants-in-Aid for Capital Assets (2014-26)
- ₹26.17 trillion
- Capital Expenditure as % of GDP (2014-15)
- 1.6%
- Capital Expenditure as % of GDP (2023-24 and 2024-25)
- 3.2%
- Capital Expenditure as % of GDP (2025-26)
- 3.1%
- Budgeted Effective Capital Expenditure for FY27
- ₹17.15 trillion