India’s Big Infrastructure Boom: Roads, Airports, and Digital Growth
Over the last ten years, the Indian government has significantly increased its spending on infrastructure. From Rs 1.97 trillion in FY2014-15 to Rs 11.1 trillion in FY2024-25, this spending has helped India grow its physical and digital infrastructure.
Physical Infrastructure
India now has the second-largest road network in the world, just behind the United States. The country’s airports have also grown, making India the third-largest domestic aviation market after China and the US. This growth is partly due to the UDAN scheme, which has improved regional air connectivity.
Digital Infrastructure
India’s digital infrastructure has also seen rapid growth. The Digital Public Infrastructure (DPI) initiative, part of the Digital India campaign, has expanded internet connectivity and digital services. This includes Aadhaar for digital identification, UPI for payments, and DigiLocker for data exchange.
Economic Impact
These infrastructure improvements have boosted India’s ranking on the World Bank’s Logistics Performance Index (LPI). The country’s ranking has improved from 54 out of 160 countries to 38 out of 139 countries over the past decade.
Future Investments
The government plans to spend Rs 11.1 trillion on infrastructure in FY2024-25, a 16.9% increase from the previous year. This investment will help improve logistics, connectivity, and economic growth. New airports, renewable energy projects, and data centers are some of the key areas of focus.
Challenges
Despite these advancements, challenges remain. High unemployment rates and a slow recovery from the COVID-19 pandemic are issues the government is addressing with Rs 2 trillion allocated for new employment and skilling schemes.
Overall, India’s infrastructure growth is set to benefit various sectors, including aviation, renewable energy, and data centers, while also boosting the steel and cement industries.
Doubts Revealed
Infrastructure -: Infrastructure means the basic physical and organizational structures needed for the operation of a society, like roads, airports, and internet systems.
Trillion -: A trillion is a very large number, equal to one lakh crore (1,00,00,00,00,000).
Road network -: A road network is a system of interconnected roads designed to transport people and goods from one place to another.
Domestic aviation market -: The domestic aviation market refers to the industry of airlines and flights that operate within a country’s borders.
Aadhaar -: Aadhaar is a unique identification number given to residents of India, which helps in accessing various services and benefits.
UPI -: UPI stands for Unified Payments Interface, a system that allows people to transfer money between bank accounts instantly using their mobile phones.
Logistics -: Logistics involves the planning and movement of goods and services from one place to another efficiently.
Connectivity -: Connectivity means how well different parts of a country or region are linked together, making it easier for people and goods to move around.
Economic growth -: Economic growth is the increase in the amount of goods and services produced by a country, which usually leads to better living standards.
Unemployment -: Unemployment means the number of people who do not have a job but are looking for one.
COVID-19 recovery -: COVID-19 recovery refers to the process of getting back to normal life and economic activities after the disruptions caused by the COVID-19 pandemic.