Government needs the support of private sector to fulfill all the infrastructure needs
Budget 2025: The government cannot fulfill all the infrastructure needs alone. For this, support from the private sector is necessary. There is a limit on budgetary expenditure, so it is necessary to encourage private investors. According to the Economic Survey, to develop like the rich countries of the world, the government needs the support of private investors. The capacity of private investors to think about projects should be increased.
Muskan Kumawat Verified Local Voice • 13 Apr, 2026Journalist
January 31, 2025 • 11:57 PM 0
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“Government needs the support of private sector to fulfill all the infrastructure needs”
Government needs the support of private sector to fulfill all the infrastructure needs
A strong foundation structure is ready for developed India. However, this construction is not going to happen only with the support of the government. This foundation is the development of infrastructure. Despite a 3.3-fold increase in government expenditure in the last five years, private investors must come forward to achieve success like developed countries on the infrastructure front.
The survey recognizes that at a variety of government levels, budget restrictions apply, that is, government expenses cannot exceed that level. As per the survey conducted by the government, in an endeavor to make India develop in 2047, one will have to accelerate private investment in a variety of key sectors since it is realized that no one can depend exclusively on the government for everything.
The idea of such a survey is important in consideration of, out of a target of mobilizing Rs 4.30 lakh crore through private investment in 2022 to 2024, Rs 3.86 lakh crore could mobilize only. There will have to be a change in private investors' thinking regarding projects. There will have to be a change in their confidence in terms of taking a risk and, at the same time, in terms of profit sharing as well.
The survey also underlines the need for there should be a clear picture regarding contract management, resolution of disputes, and closure of the project, only then the confidence of private investors will be strengthened. The Modi government has given top priority to road construction, development of rail services and facilities, expansion of airports, and increasing their number as well as port development.
This has accelerated the pace of development and has also fulfilled the expectations of the rapidly emerging middle class, but it is said that the needs of the middle class, which generally benefits the most from infrastructure development, are much more than this. The biggest criteria for the concept of developed India to be fulfilled also include the construction of infrastructure that can compete with the major countries of the world.
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The survey says that along with the efforts of the government, it will have to be accepted with full seriousness that the flourishing of the Public-Private Partnership (PPP) model is equally important for infrastructure projects. That is, the private sector should also walk hand in hand with the government.
This should be visible from planning programs and projects to raising money for them, construction, maintenance, earning money, and assessing the impact. The survey says that there are many needs, and efforts will also have to be increased. Integrated multi-modal transport and modernization of the existing infrastructure will increase our capacity and the goal of last-mile connectivity will be achieved.
There is a need to focus more on critical needs such as disaster-resilient urbanization, public transport, conservation and restoration of heritage sites, development of tourist destinations, and improvement of overall public infrastructure including connectivity in rural areas.
Given our commitment to net zero, there should be an emphasis on the potential of renewable energy. The survey also suggests that to increase the confidence of the private sector in important infrastructure projects, it is necessary to bring together governments at different levels, key financial market players, project management experts, and planners on one platform.
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