<h4>Introduction to Infrastructure Development in India</h4><p><strong>Infrastructure development</strong> is the backbone of India's economic progress. Over the past decade, India has achieved remarkable strides in this crucial sector.</p><div class='info-box'><p>The total <strong>infrastructure investment (capital expenditure)</strong> in India is projected to increase to <strong>Rs 11.2 lakh crore</strong> in <strong>2025-26</strong>, up from <strong>Rs 10 lakh crore</strong> in <strong>2023-24</strong>.</p></div><h4>Budget 2025-26: Key Infrastructure Initiatives</h4><p>The <strong>Budget 2025-26</strong> introduced several significant initiatives aimed at bolstering infrastructure across various sectors.</p><h5>Infrastructure Financing</h5><p>A major focus is on innovative financing mechanisms to fund large-scale projects.</p><ul><li>Under the <strong>National Monetisation Plan</strong>, assets worth <strong>Rs 10 lakh crore</strong> are targeted for monetisation over the next five years (<strong>2025-30</strong>).</li><li>The government will provide certainty in the taxation of <strong>Alternative Investment Funds (AIFs)</strong> specifically for infrastructure projects, encouraging private investment.</li><li>States are encouraged to propose projects for funding through <strong>India Infrastructure Project Development Fund (IIPDF)</strong> loans.</li></ul><h5>Urban Development Initiatives</h5><p>To address the challenges and opportunities in urban areas, new funds and strategies are being implemented.</p><ul><li>An <strong>Urban Challenge Fund</strong> of <strong>Rs 1 lakh crore</strong> will be established.</li><li>This fund aims to implement proposals focused on '<strong>cities as growth hubs</strong>', '<strong>creative redevelopment of cities</strong>', and '<strong>smart urbanisation</strong>'.</li></ul><h5>Railways Sector Enhancements</h5><p>The Indian Railways is set for significant upgrades and expansion.</p><ul><li>India aims to become the <strong>2nd-largest cargo-carrying railway</strong> globally, after China.</li><li>There is a push towards producing indigenous <strong>high-speed ‘bullet’ trains</strong>.</li><li>The Indian Railways is on track to achieve <strong>100% electrification</strong> of its network by <strong>FY 2025-26</strong>.</li></ul><h5>Shipbuilding Industry Support</h5><p>Measures are being introduced to boost the domestic shipbuilding sector.</p><ul><li>A fund of <strong>Rs 25,000 crore</strong> will be established to support the maritime industry, promoting competition and long-term financing.</li><li><strong>Large ships</strong> will be granted <strong>infrastructure status</strong>, which can reduce financial costs by up to <strong>10 percentage points</strong>.</li></ul><div class='info-box'><p><strong>Infrastructure status</strong> enables better financing options, tax benefits, enhanced government support, and fewer regulatory hurdles for projects.</p></div><ul><li><strong>Credit notes</strong> will be introduced for shipbuilding in Indian yards to foster a <strong>circular economy</strong>.</li></ul><div class='info-box'><p><strong>Credit notes</strong> are typically used when goods are returned. In shipbuilding, they can help companies involved in shipbreaking to return or recycle materials like <strong>steel</strong>, <strong>copper</strong>, and <strong>aluminum</strong> obtained from dismantled ships.</p></div><h5>Aviation Sector Expansion</h5><p>The civil aviation sector continues its growth trajectory with renewed schemes.</p><ul><li>The <strong>UDAN scheme</strong> has been extended for another <strong>10 years</strong>.</li><li>A revamped <strong>UDAN scheme</strong> aims to connect <strong>120 new destinations</strong>, serving an additional <strong>40 million passengers</strong>.</li><li>New <strong>greenfield airports</strong> in Bihar will complement the expansions of <strong>Patna</strong> and <strong>Bihta (in Patna) airports</strong>.</li></ul><h5>Housing Sector Acceleration</h5><p>Efforts are underway to complete pending housing projects.</p><ul><li><strong>SWAMIH Fund 2</strong>, with a corpus of <strong>Rs 15,000 crore</strong>, will be set up.</li><li>This fund, with contributions from the government, banks, and private investors, aims to speed up the completion of <strong>1 lakh incomplete housing units</strong>.</li></ul><h5>Local Economy Empowerment</h5><p>Support for street vendors and small businesses is being enhanced.</p><ul><li>The <strong>PM-SVANidhi scheme</strong> will be revamped to provide enhanced loans from banks.</li><li>It will also introduce <strong>UPI-linked credit cards</strong> with a limit of <strong>Rs 30,000</strong> for beneficiaries.</li></ul><h4>Current Status of Infrastructure Development in India</h4><p>India has made significant progress across various infrastructure sectors, demonstrating robust growth.</p><h5>Highways and Roads</h5><p>India boasts one of the largest road networks globally, with continuous expansion.</p><ul><li>India possesses the <strong>2nd-largest road network globally</strong>, surpassed only by the United States.</li><li>The length of <strong>National Highways (NH)</strong> stood at <strong>1,46,145 km</strong> in <strong>2024</strong>.</li><li>Operational <strong>high-speed corridors</strong> have expanded to <strong>2,138 km</strong> in <strong>2024</strong>.</li></ul><div class='info-box'><p>The pace of <strong>NH construction</strong> has significantly increased from <strong>12.1 km/day</strong> in <strong>2014-15</strong> to an average of <strong>28.6 km/day</strong>, reaching <strong>33.8 km/day</strong> in <strong>2023-24</strong>. Capital expenditure in this sector has risen <strong>5.7 times</strong> between <strong>2013-14</strong> and <strong>2023-24</strong>.</p></div><h5>Railways Electrification and Modernisation</h5><p>Indian Railways continues its electrification drive and modernisation efforts.</p><ul><li>As of <strong>December 2023</strong>, <strong>93.83%</strong> of the <strong>broad-gauge tracks</strong> were electrified. This is a substantial increase from <strong>21,801 km</strong> in <strong>2014</strong>.</li></ul><div class='info-box'><p>A <strong>broad-gauge track</strong> is also known as a large line, with the distance between the two tracks being <strong>5 feet 6 inches</strong>.</p></div><ul><li>The provision of <strong>Bio-toilets</strong> in coaches has reached <strong>80,478 coaches</strong> between <strong>2014</strong> and <strong>2023</strong>, enhancing sanitation.</li></ul><h5>Civil Aviation Growth</h5><p>India's civil aviation market has seen rapid expansion, becoming a global leader.</p><ul><li>India is now the <strong>3rd-largest domestic aviation market globally</strong>.</li><li>The number of operational airports has increased from <strong>74</strong> in <strong>2014</strong> to <strong>157</strong> in <strong>2024</strong>.</li><li>Under the <strong>Regional Connectivity Scheme (RCS) - UDAN</strong>, approximately <strong>147 lakh passengers</strong> had benefited as of <strong>December 2024</strong>.</li></div>