Major infra projects growth up by 168% between FY14 to FY24

Infra growth: In a recent analysis of India's infrastructure, Ministry of Statistics and Programme Implementation (MoSPI) has unveiled insights into country's development trajectory. According to MoSPI infrastructure tracker, India has witnessed a remarkable surge in infrastructure projects, marking a significant stride towards bolstering nation's economic backbone.

Rapid Growth and Expansion

data revealed a staggering 168 per cent increase in major infrastructure projects (valued above Rs 1.5 billion ) between FY14 and FY24, showcasing an accelerated pace of development compared to preceding dece. Over this period, original cost of major projects tracked by MoSPI has skyrocketed from Rs 8 trillion to Rs 27 trillion, signifying an impressive 240 per cent surge.

Ros Taking Center Stage

A notable trend observed was significant shift towards ro infrastructure. While railways dominated in FY14, ros have now emerged as dominant sector, commanding 58 per cent of 1,902 major projects tracked by MoSPI in FY24. This shift underscores a strategic pivot towards enhancing transportation infrastructure to facilitate economic growth.

Sector Distribution and Cost Analysis

analysis revealed that ros, railways, petroleum, coal, and power sectors collectively accounted for over 90 per cent of total major infrastructure projects. Despite ir prevalence, ro projects emerged as most cost-effective, with an average original cost of Rs 7.7 billion, while urban development projects proved to be most expensive.

Navigating Cost Overruns

While ro projects demonstrated commendable efficiency with minimal average cost overruns of 3 per cent, power and railway projects faced more significant challenges, experiencing cost overruns of 20 per cent and 52 per cent respectively. se insights underscore importance of efficient project management and resource allocation in mitigating cost escalations.

Government Focus and Implications

government's unwavering focus on ro and railway infrastructure aligns with India's ambitions to position itself as a cost-competitive manufacturing hub. With increased capital expenditure allocations to se sectors, coupled with prudent fiscal measures, India aims to fortify its infrastructure backbone to support sustained economic growth and development.