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Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development.

Over the next 10 years, demand for urban freight is predicted to increase by 140%. Final-mile freight transit in Indian cities accounts for 50% of the total logistics expenditures in the country's increasing e-commerce supply chains. Indian logistics market is estimated to touch US$ 320 billion by 2025.

The total road network in India is 6.2 mn km comprising all categories of roads - national & state highways and urban & rural roads. National Highways (NH) account for 2% of the total road network and carry over 40% of total traffic. The Government has set an ambitious target in Budget 2022-23 of expanding the National Highway network by 25,000 kms over the fiscal year. Ministry of Roads & Highways overall target to develop 2 lakh Kms of National Highway Network by 2025.

In Union Budget 2022-23:

    • The government has given a massive push to the infrastructure sector by allocating Rs. 10 lakh crore (US$ 130.57 billion) to enhance the infrastructure sector.
    • The government allocated Rs. 134,015 crore (US$ 17.24 billion) to National Highways Authority of India (NHAI).
    • The government announced an outlay of Rs. 60,000 crore (US$ 7.72 billion) for the Ministry of Road Transport and Highways.
    • The government announced Rs. 76,549 crore (US$ 9.85 billion) to the Ministry of Housing and Urban Affairs.
    • The government allocated Rs. 84,587 crore crore (US$ 10.87 billion) to the Department of Telecommunications to create and augment telecom infrastructure in the country.
    • The total revenue expenditure by Railways is projected to be Rs. 234,640 crore (US$ 30.48 billion)
    • 100 PM-GatiShakti Cargo Terminals for multimodal logistics facilities will be developed over next three years.
    • Focus was on the PM GatiShakti - National Master Plan for multimodal connectivity to economic zones. Everything, from roads to trains, from aviation to agriculture, as well as many ministries and departments, will be integrated under the PM GatiShakti National Master Plan.