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

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

Rapid Growth and Expansion

The 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 the preceding decade. Over this period, the 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.

Roads Taking Center Stage

A notable trend observed was the significant shift towards road infrastructure. While railways dominated in FY14, roads have now emerged as the dominant sector, commanding 58 per cent of the 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

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

Navigating Cost Overruns

While road 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. These insights underscore the importance of efficient project management and resource allocation in mitigating cost escalations.

Government Focus and Implications

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