India's Infrastructure Projects: Cost Overruns and Sector Priorities

India's infrastructure projects have encountered substantial financial challenges, with several projects exceeding their initial budget by a staggering Rs 5.52 lakh crore, as highlighted in a government report for January 2026. The report, titled 'Flash Report on Central Sector Infrastructure Projects,' was published by the Ministry of Statistics and Programme Implementation (MoSPI).

The report outlines that the revised cost for 1,702 projects valued at over Rs 150 crore has surged to Rs 39.25 lakh crore, compared to an original cost of Rs 33.71 lakh crore. As of now, a cumulative expenditure totaling Rs 20.02 lakh crore has been incurred. The transport and logistics sector emerges as the major focus, with 1,180 ongoing projects revised at Rs 20.65 lakh crore.

Furthermore, the Ministry of Road Transport & Highways is responsible for 863 projects, amounting to Rs 8.1 lakh crore, while the Ministry of Railways oversees 249 projects with a larger cost share of Rs 8.5 lakh crore. Recent commissioned projects include significant developments in railways, power, and petroleum, underlining the government's commitment to enhancing infrastructure.