India has significantly increased public investment in infrastructure, with government spending on highways, railways, and semiconductor manufacturing nearly doubling over the past five years. Public works expenditure reached Rs 11 trillion in FY25 and is set to hit a record Rs 12.2 trillion in FY26, as reported by Nikkei Asia. This investment drive follows India’s 7.7% economic growth in FY25, fueled by infrastructure spending and strong consumer demand.
A key focus has been on road development, with the government fast-tracking the construction of national highways to meet the growing transportation needs of an urbanizing economy. Notably, the Rs 360-billion Ganga Expressway project in Uttar Pradesh, a 594-kilometer corridor along the Ganges basin, aims to enhance connectivity and boost economic activity in the region. Prime Minister Narendra Modi has hailed this project as a vital driver of the state’s progress, drawing parallels to the historical significance of the Ganges River.
In the realm of rail infrastructure, India is witnessing a significant transformation with the Mumbai-Ahmedabad high-speed rail corridor, the country’s first bullet train project, making substantial progress. Over 80% of the work on the approximately 500-kilometer route has been completed, with Japan providing substantial financial backing, funding about 80% of the project cost through concessional yen loans. India is targeting partial operations on the corridor by August 2027, with plans to introduce next-generation E10 series trains from Japan in the early 2030s.
Furthermore, India is leveraging infrastructure investments to bolster its manufacturing base, particularly in the semiconductor sector. Through the Make in India initiative, New Delhi has identified chip manufacturing as a strategic industry and is offering incentives to attract global investments, according to the report.
