India's Transport sector corners investment worth ₹69 lakh-cr

The government's India Investment Grid (IIG) database report reveals that the transport sector has secured a substantial investment of about ₹69 lakh crore across various projects currently in different developmental stages. Roads and highways claim the highest share of this investment, followed by Railways and Urban Public Transport. The report predicts a growth rate of approximately 4.5% Compound Annual Growth Rate (CAGR) in the sector from 2022 to 2050, with expectations of continued significant investments.

The government has set ambitious targets for expanding the transport sector, with a notable increase in highway construction from 6,061 km in FY16 to 10,457 km in FY22. The private sector has actively participated through the Build-Operate-Transfer (BOT) and Hybrid Annuity Model (HAM) under Public–Private Partnership (PPP), along with monetizing existing assets. The sector holds a substantial 27% share in the National Monetization Pipeline (NMP) and aims to generate ₹45,000 crore through monetization in FY24.

Looking ahead, the report indicates that nearly 75% of greenfield highway projects from FY24 onwards will be bid out on the PPP model. The transport sector remains a strategic focus for the government, reflecting in the significant investment and ambitious plans for growth and development.