For this article:

2 Feb 2026·Source: The Indian Express
3 min
EconomyPolity & GovernanceNEWS

Railways and Highways Lead Infrastructure Spending, Claim 47% of Capex

Railways and highways remain key infrastructure drivers, consuming 47% of capital expenditure.

Railways and Highways Lead Infrastructure Spending, Claim 47% of Capex

Photo by Irina Iriser

Railways and highways continue to be primary drivers of infrastructure development. These sectors account for 47% of the total capital expenditure (capex). This sustained investment highlights the government's focus on enhancing connectivity and transportation infrastructure across the country. The emphasis on railways and highways aims to improve logistics, reduce transportation costs, and stimulate economic growth by facilitating faster and more efficient movement of goods and people. The continued prioritization of these sectors reflects their critical role in supporting broader economic development goals.

Key Facts

1.

Railways and highways: Primary infrastructure drivers

2.

Capex allocation: 47% to railways and highways

UPSC Exam Angles

1.

GS Paper 3 (Economy): Infrastructure development, investment models, government policies

2.

Connects to syllabus topics like economic planning, resource allocation, and sustainable development

3.

Potential question types: Statement-based, analytical questions on infrastructure financing and policy

Visual Insights

More Information

Background

The focus on railways and highways for infrastructure development has historical roots in India's economic planning. Early five-year plans recognized the importance of transportation networks for industrial growth and agricultural development. The Planning Commission, now replaced by NITI Aayog, played a crucial role in allocating resources to these sectors. Over time, the approach to infrastructure development has evolved. Initially, the government was the primary investor. However, with economic liberalization in the 1990s, there was a shift towards public-private partnerships (PPPs) to attract private investment and expertise. This led to the development of new financing models and regulatory frameworks. The National Highways Authority of India (NHAI) was established to manage the development and maintenance of national highways. The legal and constitutional framework for infrastructure development is multifaceted. Land acquisition is governed by laws like the Land Acquisition Act (now replaced by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013). Environmental clearances are mandated under the Environment Protection Act, 1986. These laws aim to balance development needs with social and environmental concerns.

Latest Developments

Recent government initiatives have focused on accelerating infrastructure development. The Bharatmala Pariyojana for highways and the dedicated freight corridors for railways are key projects. These initiatives aim to improve connectivity, reduce logistics costs, and boost economic growth. There are ongoing debates about the optimal mix of public and private investment in infrastructure. Some argue for greater public investment to address market failures and ensure equitable access. Others emphasize the role of private sector efficiency and innovation. Institutions like NITI Aayog and the Ministry of Finance play a crucial role in shaping infrastructure policy. The future outlook for infrastructure development in India is positive. The government has set ambitious targets for expanding the railway and highway networks. Increased investment in these sectors is expected to drive economic growth and create employment opportunities. However, challenges remain in areas such as land acquisition, environmental clearances, and financing.

Frequently Asked Questions

1. What percentage of total capital expenditure is allocated to railways and highways, according to the article?

According to the article, railways and highways account for 47% of the total capital expenditure.

2. Why is the government prioritizing investment in railways and highways?

The government is prioritizing investment in railways and highways to improve logistics, reduce transportation costs, stimulate economic growth, and enhance connectivity across the country.

3. What are some recent government initiatives related to railway and highway infrastructure development?

Recent government initiatives include the Bharatmala Pariyojana for highways and dedicated freight corridors for railways. These projects aim to improve connectivity and reduce logistics costs.

4. How does the emphasis on railways and highways impact the common citizen?

Improved railways and highways can lead to faster and more efficient movement of goods and people, potentially reducing the cost of goods and making travel easier for common citizens.

5. What is the historical background of focusing on railways and highways for infrastructure development in India?

The focus on railways and highways has historical roots in India's economic planning. Early five-year plans recognized the importance of transportation networks for industrial and agricultural development. The Planning Commission (now NITI Aayog) played a key role in resource allocation.

6. What are the key facts about capital expenditure on railways and highways that are important for the UPSC Prelims exam?

For UPSC Prelims, remember that railways and highways account for 47% of the total capital expenditure. This highlights the government's focus on these sectors for infrastructure development.

Exam Tip

Remember the 47% figure for potential MCQ questions.

7. What are the potential drawbacks of prioritizing railways and highways over other modes of transportation?

Prioritizing railways and highways might lead to underinvestment in other crucial infrastructure areas like waterways, airways, and urban transport systems. This could create bottlenecks and limit overall economic efficiency.

8. What is the significance of the Bharatmala Pariyojana?

The Bharatmala Pariyojana is a government initiative focused on improving the highway infrastructure across the country. It aims to enhance connectivity, reduce logistics costs, and boost economic growth by facilitating faster movement of goods and people.

9. How did the Planning Commission influence infrastructure development in the past?

The Planning Commission played a crucial role in allocating resources to railways and highways during the five-year plans. It recognized the importance of these sectors for overall economic development.

10. What are the ongoing debates regarding public and private investment in infrastructure development, as related to railways and highways?

There are ongoing debates about the optimal mix of public and private investment in infrastructure. Some argue for greater private sector involvement to improve efficiency and innovation, while others emphasize the role of public investment in ensuring equitable access and social welfare.

Practice Questions (MCQs)

1. Consider the following statements regarding infrastructure development in India: 1. Railways and highways account for approximately 47% of the total capital expenditure (capex) in infrastructure. 2. The government's focus on railways and highways aims to improve logistics and reduce transportation costs. 3. Increased investment in railways and highways is expected to hinder economic growth by increasing transportation costs. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statement 1 is CORRECT: According to the news summary, railways and highways account for approximately 47% of the total capital expenditure (capex) in infrastructure. Statement 2 is CORRECT: The government's focus on railways and highways aims to improve logistics, reduce transportation costs, and stimulate economic growth. Statement 3 is INCORRECT: Increased investment in railways and highways is expected to stimulate economic growth by facilitating faster and more efficient movement of goods and people, not hinder it.

2. Which of the following best describes the primary objective of the Bharatmala Pariyojana?

  • A.To promote digital literacy in rural areas
  • B.To develop and expand the national highway network
  • C.To provide affordable healthcare to all citizens
  • D.To improve irrigation facilities for farmers
Show Answer

Answer: B

The Bharatmala Pariyojana is a centrally sponsored and funded road and highways project of the Government of India. The primary objective is to optimize the efficiency of freight and passenger movement across the country by bridging critical infrastructure gaps. This is achieved through the development and expansion of the national highway network.

3. With reference to infrastructure development in India, consider the following: List I (Organizations) 1. Planning Commission 2. National Highways Authority of India (NHAI) List II (Functions) a. Development and maintenance of national highways b. Formulating Five-Year Plans Which of the following is the correct matching of List I to List II?

  • A.1-a, 2-b
  • B.1-b, 2-a
  • C.1-a, 2-a
  • D.1-b, 2-b
Show Answer

Answer: B

The Planning Commission (now replaced by NITI Aayog) was responsible for formulating Five-Year Plans in India. The National Highways Authority of India (NHAI) is responsible for the development and maintenance of national highways.

GKSolverToday's News