The Indian government’s record Rs 11.5 lakh crore capex aims to supercharge connectivity and growth. But with private capital lagging and concentration among a few players, where is this public money really going?
https://thewire.in/political-economy/india-infrastructure-growth-story
After 11 years at the Centre and over Rs 54 trillion spent on capital expenditure, Prime Minister Narendra Modi’s emphasis on infrastructure as a catalyst for growth and employment has benefitted the private sector and created a new class of nouveau riche contractors at an unprecedented pace in the country’s history.
In the Union Budget for 2025-26, India’s Union government allocated Rs 11.2 lakh crore towards capital expenditure projects including roads, highways, ports, energy, railways and metros, and urban and rural development. That is over one and a half times more money than what was allocated towards education, healthcare, social welfare schemes and programmes that support the bottom half of India’s populace, such as the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), National Health Mission, affordable housing and skill training.
Privatisation and multi-million dollar tenders from the government have created new pockets of wealth among infrastructure players across the country. But there is scant data on who these business persons are, and few have analysed the gamut of the contractor economy that benefits from government largesse.
11/06/2025