PPPs in Infrastructure: Economic Survey 2024-25 View
Why in the news
The Economic Survey 2024-25 pressed for full-fledged use of PPPs to close infrastructure gaps and speed up growth in key sectors.
Key facts
- Wants stronger private participation via better risk and revenue sharing, contract management and project closure.
- Infrastructure capex is rising, but demand stays unmet in ports, railways, civil aviation and roads.
- Budget limits mean public investment alone cannot meet needs; private role sought in financing, construction and monetisation.
Capex used, as of November 2024
| Sector | Share of budget spent |
|---|---|
| Ports & Shipping | 76% |
| Civil Aviation | 69% |
| Railways | 67% |
| Water & Sanitation | 57% |
| Power, Roads | 54% each |
| Rural Development | 52% |
| Housing & Urban Affairs | 49% |
Concerns and way forward
- PPPs have worked in only a few sectors; uptake remains thin in core areas.
- Private entry stayed slow despite the National Infrastructure Pipeline and PM Gati Shakti, owing to political cycles and electoral pressures.
- Governments, financial markets, project experts and the private sector should plan jointly, with sector-specific strategies and dispute resolution.
Exam angle
- Highest capex use: Ports & Shipping; lowest: Housing & Urban Affairs.
- Related terms: PPP, National Infrastructure Pipeline, PM Gati Shakti.