Infrastructure is the platform for Governance, Commerce, and economic growth, and is the
lifeline for modern societies—it delivers the fundamental needs of food, water, energy,
shelter, governance. Under Budget 2024-2025, the US $1.4 trillion is planned to make a pivot
point in investment plan.
Investment in infrastructure is essential for more rapid and inclusive economic growth:
Job Creation: Capital investment in infrastructure development such as road, railways,
residence construction generates employment generation. MNREGA and PM-Awas Yojna are examples of this.
Transport and Trade Costs: Well-designed infrastructure reduces trade costs and
facilitates economies of states. Building world-class roads, railways, and inland waterways cuts logistic costs and improves competitiveness and promotes exports.
Gati Shakti Scheme with a budget of 1.88 lakh Crore aims at planning, coordination, and
executing projects.
Increased Production and Consumption: Smooth flow of goods and services, reducing
Transaction costs increases the production and consumption costs inches to increment
since wastage is reduced.
Inclusive Growth: By improving the access to health, education, trade, food to the people
at the bottom of the strata inclusive growth is achieved.
Contributes to GDP: Infrastructure investment has a multiplier of 2.4. The electricity
generation, telecommunication, etc. industrial process has a positive effect on gross
domestic product.
PM Suraya Ghar aims to provide free electricity to every household in India.
Investment on Infrastructure closely aligns to SDG 9: "build resilient infrastructure to
promote inclusive and sustainable industrialization and foster innovation." Hence initiatives
like NIP, Gati-Shakti scheme, and National Manufacturing Policy must be implemented to lay
down the foundation for a truly Aatmanirbhar Bharat.
The Role of Infrastructure in India's Economic Transformation