CAPEX ON INFRA GOES UP TO 3.4% OF GDP IN 10 YEARS: MOODY'S

○ver the last ten years, the government has escalated its capital spending on infrastructure from Rs 1.97 trillion (1.6 per cent of GDP) in FY2014-15 to Rs 11.1 trillion (3.4 per cent of GDP) in FY2024-25, according to Moody's.

This leap reflects a broader strategy to enhance physical and digital infrastructure, supporting an average annual GDP growth rate of 6 per cent and encouraging private sector participation through public-private partnerships (PPPs).

The increase in government capital expenditure and private sector investments has catalysed India's infrastructure overhaul.

India's infrastructure development has seen unprecedented progress over the past decade, driven by substantial capital spending from both government and private sectors. This transformation spans physical infrastructure, such as railways, roads, airports, and digital advancements, positioning India as a leader among emerging markets.

Recent developments have not only bolstered connectivity and logistics but also significantly improved the country's ranking on the World Bank's Logistics Performance Index (LPI).