India's Economy Races to $7 Trillion: Infrastructure Fuels Growth

India is on a trajectory to become the world's third-largest economy by 2030, targeting a GDP exceeding $7 trillion. This ambitious goal is significantly propelled by substantial investments in infrastructure, with roads, railways, and renewable energy spearheading the expansion. The government has amplified capital expenditure, particularly in transportation, earmarking over ₹11 lakh crore for infrastructure spending in FY26.

In the past year, the Ministry of Road Transport and Highways and the Ministry of Railways have shown robust capital expenditure utilization. Over 4,600 km of national highways were constructed in the current fiscal year, and 42 new railway projects were initiated. Alongside network expansion, there's a focus on upgrading existing infrastructure, evidenced by the introduction of new train services like Vande Bharat and Amrit Bharat Express.

The renewable energy sector has been a standout performer, achieving a record 44.5 GW capacity addition in 2025, bringing the total installed capacity to 254 GW. Solar capacity reached 133 GW, with significant future emphasis on high-efficiency modules and energy storage. Despite a slowdown in road project awards, railways are advancing with structural reforms and capacity augmentation, aiming for enhanced freight loading and safety upgrades.