The Indian government has set an ambitious national goal: to transform the country into a fully developed nation by the time it celebrates 100 years of independence in 2047. This vision, known as 'Viksit Bharat' 2047, hinges on a monumental economic expansion, aiming to grow the economy from its current size of approximately $4 trillion to a staggering $30 trillion by 2046. The chosen engine for this multi-decade transformation is a massive, sustained push on public infrastructure spending, creating a historic opportunity for the investment community.
The Capex Engine: From 2 Lakh Crore to 11 Lakh Crore
The most tangible proof of this commitment is the explosive growth in the government's Capital Expenditure (Capex). Central government Capex has undergone a dramatic six-fold increase, soaring from around ₹2 lakh crore in the fiscal year 2014-15 to an estimated ₹11.21 lakh crore as outlined in the Union Budget for 2025-26. This isn't just a number on a spreadsheet; it represents concrete action—building roads, railways, ports, and digital networks that fuel job creation, boost demand for materials and services, and enhance overall economic productivity.
This relentless focus on building national assets has fundamentally shifted India's growth model. There is now a definitive move towards investment-led growth, as evidenced by a substantial rise in the share of Infra-Related Gross Fixed Capital Formation (GFCF), moving away from a model primarily driven by consumption. From expanding metro rail networks in major cities to modernizing ports and constructing strategic Dedicated Freight Corridors, India's physical and digital backbone is being rebuilt for the future.
Paving the Way for Private Investment
The government's strategy involves doing the initial heavy lifting. By deploying public capital at scale, it de-risks large-scale projects, builds foundational assets, and creates a conducive environment. The ultimate objective is to catalyze a broad-based revival in private capital expenditure (Private Capex). The expectation is that once the groundwork is firmly laid by the state, private enterprises will take the baton, investing in manufacturing, services, and allied sectors to drive the next wave of high-quality growth.
Infrastructure Funds: A Strategic Investment Vehicle
For retail and institutional investors aiming to participate directly in this national infrastructure story, a dedicated thematic fund offers a structured and diversified pathway. Instead of picking individual stocks in a complex and cyclical sector, an infrastructure fund provides professional, active management. A case in point is the Mirae Asset Infrastructure Fund, an open-ended equity scheme whose New Fund Offer (NFO) is set to close on December 1, 2025. Such funds allow exposure to a wide array of companies across the infrastructure ecosystem.
Why active management is critical: The infrastructure sector, despite its long-term potential, is known for its cyclicality and sensitivity to policy execution timelines. An actively managed fund can navigate these cycles intelligently. A skilled fund manager can dynamically adjust the portfolio—for instance, leaning towards construction and material companies during building phases and later shifting towards operational assets like power utilities or logistics firms when projects mature and generate stable cash flows.
Furthermore, through a combination of top-down analysis of government policy and bottom-up selection of robust companies, these funds seek to identify firms with strong balance sheets and proven execution capabilities, well-positioned to win contracts and manage project risks effectively.
In summary, the Viksit Bharat 2047 vision has redefined infrastructure investing in India. It is no longer a short-term play but a long-term, policy-backed structural transformation. For the common investor, a thematic infrastructure fund emerges as a potent instrument to gain diversified exposure and potentially benefit from the construction of a new, developed India by its centennial year of independence.
