India’s Infrastructure is Getting Better Thanks to Government Initiatives like Gati Shakti
A report by Morgan Stanley highlights significant improvements in India’s infrastructure due to government initiatives like ‘Gati Shakti’. The report notes that India’s infrastructure spending has increased, focusing on modernizing physical assets. Comparing infrastructure scale relative to GDP, India fares well against China. Future projections indicate a rise in infrastructure investment from 5.3% of GDP in 2024 to 6.5% by 2029, with cumulative spending of USD 1.45 trillion over the next five years.
Government Initiatives
The report mentions several government initiatives aimed at improving infrastructure:
- ‘Bharatmala’ for road development
- ‘Sagarmala’ for port connectivity
- Power for All
- Waterways development program
Future Projections
The report projects a steady increase in India’s infrastructure investment, expected to rise from 5.3% of GDP in 2024 to 6.5% by 2029. This indicates a robust compound annual growth rate (CAGR) of 15.3%, resulting in cumulative spending of USD 1.45 trillion over the next five years.
Comparing with China
While China’s infrastructure is often seen as a benchmark, the report indicates that India’s infrastructure is not significantly lagging behind when considering the size of their respective economies. Although there are visible differences in efficiency and quality, India’s ongoing and planned investments signify progress and potential for further development.
