The backbone of the Indian economy, the infrastructure sector, is essential to improving the nation's overall development. Other sub-segments of the industry include telephony, power, roads, ports, and so forth. India has to enhance its infrastructure in order to reach its target of a $5 trillion GDP by 2025. Along with other initiatives like "Make in India" and the production-linked incentives (PLI) programme, the government has launched the National Infrastructure Pipeline (NIP) to foster the expansion of the infrastructure industry. Historically, more than 80% of the money spent on infrastructure in the country has gone into expenditures related to transportation, electricity, water, and irrigation. Major infrastructure development requires a substantial inflow of investor funds. It is anticipated that spending will increase on transportation, urban infrastructure, and water supply.

The Smart Cities Mission was introduced by Prime Minister Mr. Narendra Modi on June 25, 2015. Through intensive work on the city's social, economic, physical, and institutional infrastructure, the mission aims to stimulate economic growth and improve quality of life. 100 localities were chosen to be developed as Smart Cities after a two-stage competition.

Additionally, the government increased financing for the infrastructure sector in the Union Budget of 2018–19 in recognition of that sector's role as the catalyst for economic growth. This gave the sector a significant boost. The transportation sector received a record-breaking allocation of Rs. 134,572 crore (US$ 16.9 billion), while initiatives to create disaster-resilient infrastructure also benefited from an allocation of Rs. 60 crore.

Businesses across industries have shifted to digital business dynamics, opening the door to a more optimistic digital future. The majority of infrastructure companies are now focusing on digitizing their processes to provide easy communication and transparency and create a robust ecosystem for digital infrastructure. On October 15, 2021, Prime Minister Mr. Narendra Modi introduced the PM Gati Shakti National Master Plan (NMP), a coordinated and comprehensive strategy for the expansion of the economy's infrastructure. To reduce travel times and boost industrial productivity, the Rs. 100 trillion ($1.25 trillion) initiative aims to strengthen interconnectivity across roads, railroads, airways, and waterways. The potential GDP growth rate of the nation's entire economy is increased by recent infrastructure improvements.

The government of India pays close attention to the infrastructure sector because it is a major contributor to the country's overall growth. In other words, through encouraging the growth of related businesses like cement, real estate, and building development projects, the infrastructure sector catalyzes India's economic growth. The government is reinvigorating infrastructure investment as the country gradually recovers from the pandemic and numerous economic sectors anticipate resuming to normal operations. The government has introduced a number of initiatives for the infrastructure sector in this regard.