Centre plans ₹11.2 lakh crore infra spend push; bullet trains, mega shipyards on priority: Report

India is preparing a major infrastructure drive focused on long-gestation projects such as bullet train corridors, large shipyards, ports and access-controlled highways under its Viksit Bharat 2047 vision, the Economic Times reported on Monday, citing government officials.

The Centre wants to ensure that the economic growth, which expanded 7.8% in the June quarter, remains on track amid global risks and US tariff pressures, the report said.

Ministries have been asked to bundle projects for quicker approvals, with public-private partnerships encouraged in areas promising high returns, officials told the paper.

The 2025-26 budget earmarked ₹11.21 lakh crore for infrastructure, while the World Bank estimates India must lift its investment rate from 33.5% to 40% of GDP by 2035 to secure long-term growth.

A high-level panel including IN-SPACe chairman Pawan Goenka and senior Niti Aayog representatives has been tasked with refining ministry-level targets, the newspaper said.

The transport ministry plans 50,000 km of access-controlled highways over the next 10–12 years at a cost of more than 20 trillion rupees, much of it from the private sector.

Shipping and railways ministries are prioritising bullet trains and mega shipbuilding clusters as part of the 2047 roadmap, according to the report.

The report comes on the heels of sweeping tax cuts on a wide range of common-use items and services, which are expected to drive consumption.

The Council, headed by Union Finance Minister Nirmala Sitharaman, approved a major overhaul of the GST structure, cutting down the four-tiered regime of 5%, 12%, 18% and 28% into just two slabs of 5% and 18%, effective September 22.

A special 40% slab has been reserved for luxury and sin goods such as high-end cars, yachts, aircraft and tobacco products.

The government estimates the net fiscal impact of GST rates rationalisation will be ₹48,000 crore on an annualised basis.

The State Bank of India (SBI) in its latest research report said that reforms in GST through a reduction in rates will cause a minimal revenue loss of ₹3,700 crore. The report said that the GST rate rationalisation will largely have a positive impact on the banking sector due to meaningful cost efficiencies.