Online Courses (English)
This just in:

Mains Practice Questions

  • Q. Discuss the significance of National Infrastructure Pipeline for India. Also examine the associated challenges. (250 words)

    05 Feb, 2020 GS Paper 3 Economy


    • Give a brief introduction to the National Infrastructure Pipeline.
    • Discuss its significance for Indian Economy.
    • Mention associated challenges.
    • Give conclusion.


    • Recently, the Government has released a report of the task force on the National Infrastructure Pipeline (NIP) for 2019-2025. Accordingly, total project capital expenditure in infrastructure sectors in India during the fiscals 2020 to 2025 is projected at over Rs 102 lakh crore.
    • NIP includes economic and social infrastructure projects in sectors such as Energy (24%), Roads (19%), Urban (16%), and Railways (13%) amount to around 70% of the projected capital expenditure in infrastructure in India.


    Significance of the National Infrastructure Pipeline:

    • NIP will enable a forward outlook on infrastructure projects which will create jobs, improve ease of living, and provide equitable access to infrastructure for all, thereby making growth more inclusive.
    • It is estimated that India should invest $4.5 trillion in infrastructure by 2030 to support faster growth. The National Infrastructure Pipeline is a part of that attempt to invest $4.5 trillion.
    • The National Infrastructure Pipeline will ensure that infrastructure projects are adequately prepared and launched.
    • It will help in stepping-up annual infrastructure investment to achieve the Gross Domestic Product (GDP) of $5 trillion by 2024-25.
    • It will boost the agrarian economy by strengthening agricultural and rural infrastructure.
    • It will further increase the connectivity in India, especially in rural areas, through the expansion of roads and railways.
    • It will ensure credit availability from the government sources to boost the economic growth, in a time when there is a lack of private investment.
    • Well-developed infrastructure enhances the level of economic activity, creates additional fiscal space by improving the revenue base of the government, and ensures the quality of expenditure focused in productive areas.
    • Overcoming slowdown: The policy of high government spending in infrastructure energises demand in other sectors and led to more fund flows to various sectors besides creating valuable assets.


    • Credit availability is the biggest challenge in the backdrop of the NPA crisis. Envisaged Private sector participation in capital expenditure (22%) may largely suffer due to this.
    • State governments’ financial commitment may not be realised because of fiscal concerns. Presently, more than 20 states already have a debt-GSDP ratio of above 25 per cent.
    • Land acquisition is a big challenge for the completion of infrastructure projects.


    Availability of quality infrastructure is a prerequisite to achieve broad-based and inclusive growth on a sustainable basis. If the concerns regarding fiscal availability are addressed properly, National Infrastructure Pipeline would be a massive exercise to realise the vision of becoming a 5 trillion $ economy by 2024.

To get PDF version, Please click on "Print PDF" button.

Print PDF
SMS Alerts

Please login or register to view note list


Please login or register to list article as bookmarked


Please login or register to make your note


Please login or register to list article as progressed


Please login or register to list article as bookmarked