As India strives to achieve its vision of 'Viksit Bharat@2047', the need for upgraded infrastructure has become increasingly crucial. The Economic Survey 2025 highlights the importance of private participation in bridging the infrastructure gap, emphasising that public capital alone cannot meet the demands of the country's growing economy.
Post-elections, capital expenditure has gained momentum, with ministries related to infrastructure sectors utilising 60% of the budgeted capex during April-November 2024, the Economic Survey noted.
The National Monetisation Pipeline, launched in August 2021, has identified assets worth Rs 6 lakh crore for FY22-25, with asset monetisation for FY22-24 reaching Rs 3.86 lakh crore against the target of Rs 4.30 lakh crore.
For FY25, aggregate monetisation target is set at Rs 1.91 lakh crore.
However, despite these efforts, there remains a significant unmet demand for infrastructure development. The goal of Viksit Bharat necessitates innovative modes of financing and greater private participation. The government's efforts need to be supplemented with increased capex and a willingness to adopt public-private partnerships to deliver infrastructure projects, the survey noted.
The private sector must reciprocate by improving its capacity to conceptualise projects, sharing risks and revenues, and demonstrating confidence in the government's policies.
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