India's Infrastructure Booms with Six-Fold Increase in Capital Expenditure

By siliconindia  |  Wednesday, June 11, 2025

India's Infrastructure Booms with Six-Fold Increase in Capital Expenditure
  • India's capital expenditure on infrastructure has increased six-fold in the last decade, reaching Rs 11.21 lakh crore in FY26.
  • Key achievements include increased road transport budget allocation and expansion of the Metro Rail Network.
  • Increased capital expenditure and rising consumption are expected to drive India's economic growth, maintaining its position as the world's fastest-growing economy.
India's infrastructure development has witnessed unprecedented growth in the last decade, fueled by a massive surge in capital expenditure, according to Finance Minister Nirmala Sitharaman. Capital expenditure has skyrocketed from Rs 2 lakh crore in 2014-15 to a record Rs 11.21 lakh crore in 2025-26, marking a six-fold increase towards the nation's 'Viksit Bharat' (Developed India) goal.
The allocation for capital expenditure in FY2026 stands at an all-time high of Rs 11.21 lakh crore.
"India’s Infrastructure has seen rapid progress in the last decade under the leadership of Prime Minister Narendra Modi", Sitharaman stated in a post on X.
The Finance Minister highlighted significant achievements, including an over 860% increase in budget allocation for road transport, exceeding Rs 3 lakh crore. The Metro Rail Network has also expanded fourfold, from 248 km in 2014 to 1011 km in 2025.
Sitharaman emphasized that engineering marvels like the Atal Tunnel and Chenab Bridge are transforming India's landscape, exemplifying Prime Minister Modi's vision for a modern, connected, and prosperous nation.
The government's focus on next-generation infrastructure is driven by sustainability and a long-term vision, laying the foundation for a self-reliant India, she added.
The government is expected to surpass its revised capital expenditure target of Rs 10.18 lakh crore for FY25. The capex target was lowered to Rs 10.18 lakh crore (revised estimates) in the Union Budget 2025-26, from Rs 11.1 lakh crore. For current fiscal (FY26), a capex allocation of Rs 11.21 lakh crore has been set by the government.
Sitharaman affirmed that the Indian economy will remain the world's fastest-growing, supported by increased government capital expenditure and rising consumption levels, particularly in rural areas. The effective capital expenditure is projected to be 4.3% of GDP in FY26, while the fiscal deficit is estimated at 4.4%.

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