Economic Survey 2024 – Public sector investment drives infrastructure growth but private investment needed | Business Insider India

• The Economic Survey 2023-24 was tabled by the Finance Minister in the Lok Sabha.
• The report was tabled a day before FM Nirmala Sitharaman is slated to present the budget.
• The report has highlighted the need for private investments in infrastructure.

Finance Minister Nirmala Sitharaman on Monday tabled the Economic Survey 2023-2024 in the Lok Sabha, a day ahead of the Budget being tabled. According to the report, India’s real gross domestic product (GDP) grew by 8.2% in FY24.

The report has revealed that large-scale infrastructure projects in the country have largely been funded by public sector investment in recent years. The government has highlighted a need for private sector investment in infrastructure building.

In the five years between 2019 and 2023, the central and state Governments contributed 49% and 29% of the total investments in infrastructure, while, the private sector’s contribution was just 22%.

“There is significant scope for boosting India’s private investment, especially in the context of investment requirements facing the Indian economy in the areas of infrastructure, green transition, etc,” as per the Economic Survey 2024.

National highways triple, railways receive a boost

In the last decade, the pace of construction of national highways has reportedly tripled. According to the Economic Survey 2024, the pace of construction of national highways has increased from 11.7 km per day in FY14 to around 34 km per day by FY24.

The capital expenditure in railways has increased by 77% in the last five years, with significant investments directed at the construction of new lines, gauge conversion and doubling.

The passenger handling capacity at airports in the country has increased by 62 million passengers per annum in FY24 with new terminal buildings being opened at 21 airports. There is now a need to add more airports and expand the existing airports.

The clean energy sector in India saw new investment of ₹8.5 lakh crore between 2014 and 2023.

Metro and rapid train connectivity to soon double

At present, 945 km of metro rail or RRTS lines are operational, out of which 86 km was added in FY24. This is set to soon double as 993 km of metro and RRTS lines are under construction in 27 cities across the country.

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