New Delhi (Economy India): Ahead of the forthcoming Union Budget, industry leaders across sectors have urged the government to double infrastructure spending to ₹3 lakh crore, stressing that a bold push in capital expenditure is critical to sustaining India’s economic momentum and strengthening its global competitiveness.
According to industry representatives, higher public investment in infrastructure will not only stimulate short-term demand but also lay the foundation for long-term productivity, job creation, and private sector investment. The demand was highlighted in a statement released by the Logistics Sector Skill Council (LSC), which drew on insights from a recent industry-wide survey.
Infrastructure Spending Seen as Key Growth Multiplier
Industry leaders argue that infrastructure has one of the highest multiplier effects in the economy, with direct and indirect benefits across manufacturing, logistics, construction, services, and employment.
“India stands at a critical juncture where sustained infrastructure investment can decisively accelerate GDP growth,” industry executives said, adding that the proposed increase to ₹3 lakh crore would help bridge long-standing gaps in logistics efficiency and regional connectivity.
The sectors identified for enhanced allocation include:
- Transport and logistics infrastructure
- Roads and highways
- Railways and multimodal connectivity
- Ports, inland waterways, and coastal shipping
- Urban infrastructure and smart cities
- Warehousing, cold chains, and logistics parks
Logistics Sector Calls for Structural Reforms
The Logistics Sector Skill Council (LSC) emphasized that increased funding must be accompanied by deep structural reforms to maximize impact. India’s logistics costs currently remain higher than global benchmarks, affecting export competitiveness and supply chain efficiency.
The LSC survey highlighted the need for:
- Faster execution of infrastructure projects
- Better coordination between central and state agencies
- Increased adoption of digital logistics platforms
- Expansion of multimodal transport networks
- Focused investment in skill development for logistics manpower
Industry experts believe that reducing logistics costs even marginally could significantly enhance India’s position as a global manufacturing and trade hub.
Aligning Budget Priorities with Global Ambitions
Industry leaders stressed that an infrastructure-focused Budget would align closely with India’s broader ambition of emerging as a global economic powerhouse. With supply chains diversifying globally, India has a unique opportunity to attract manufacturing, investment, and trade flows—provided its infrastructure ecosystem is globally competitive.
“Strong infrastructure is the backbone of a $5 trillion economy,” industry representatives noted, urging the government to use the Budget as a platform to send a clear signal of long-term policy certainty to investors.
Private Investment Hinges on Public Capex Push
Economists point out that sustained public capital expenditure has been instrumental in crowding in private investment over the past few years. A further increase in infrastructure allocation could reinforce this trend, particularly in sectors such as logistics, construction, real estate, renewable energy, and industrial corridors.
“Every rupee spent on infrastructure unlocks multiple rupees of private investment,” experts said, adding that a higher capex outlay would strengthen investor confidence amid global economic uncertainty.
Employment and Skill Development Benefits
Beyond growth and investment, industry leaders highlighted the employment potential of large-scale infrastructure spending. Projects in roads, railways, ports, and urban development generate millions of direct and indirect jobs, particularly for semi-skilled and skilled workers.
The LSC emphasized that infrastructure expansion must go hand-in-hand with skill development programs to ensure availability of trained manpower for logistics, warehousing, transport management, and supply chain operations.
Government’s Track Record Raises Expectations
The government’s consistent focus on capital expenditure in recent Budgets has raised expectations of another strong infra push this year. Industry leaders believe that doubling the allocation to ₹3 lakh crore would reinforce policy continuity and demonstrate the government’s commitment to long-term economic transformation.
While the final Budget numbers are awaited, industry stakeholders remain optimistic that infrastructure will remain a central pillar of fiscal strategy.
As India navigates global economic headwinds while pursuing ambitious growth targets, industry leaders see infrastructure spending as a strategic lever rather than mere expenditure. The call to double allocation reflects a growing consensus that sustained public investment is essential to unlocking India’s full economic potential.
All eyes are now on the Union Budget to see whether the government responds with a bold, growth-oriented infrastructure roadmap.
(Economy India)
