The government’s asset monetisation initiative under the National Monetisation Pipeline (NMP) 2.0, launched by Finance Minister Nirmala Sitharaman on Monday, is expected to increase India’s gross domestic product (GDP) by around ₹40 lakh crore over the next 5-10 years, according to a report by NITI Aayog.
The report said asset monetisation is expected to play a key role in boosting infrastructure investment and supporting economic growth by unlocking value from existing public assets and reinvesting the proceeds into new infrastructure projects. It stated that the overall monetisation plan under NMP 2.0 could add approximately ₹40 lakh crore to GDP over the medium to long term.
According to the report, the Central government’s proceeds from asset monetisation during FY26–FY30 are projected at about ₹4.6 lakh crore. Of this, around 70 per cent, or nearly ₹3.2 lakh crore, is expected to be directly invested in publicly funded infrastructure projects.
The remaining ₹1.4 lakh crore is likely to be invested through Public-Private Partnership (PPP) projects. Assuming a leverage ratio of 1:2, this component could generate investment of about ₹4.2 lakh crore, subject to favourable financial conditions.
The report also noted that proceeds accruing to Public Sector Undertakings (PSUs) are expected to significantly support infrastructure expansion. PSU proceeds of around ₹1.6 lakh crore could be leveraged to generate higher investments estimated at nearly ₹4.9 lakh crore, helping expand capital expenditure plans.
Based on these assumptions, NITI Aayog estimated that total proceeds of about ₹6.2 lakh crore from the Central government and PSUs could translate into increased infrastructure investment of approximately ₹12.2 lakh crore.
Applying a capital expenditure multiplier of 3.25, the report said this investment could lead to a substantial rise in economic activity, resulting in an estimated GDP increase of around ₹40 lakh crore over the next 5–10 years.
NITI Aayog added that NMP 2.0 targets asset monetisation worth ₹16.72 lakh crore across 12 sectors during the five-year period from FY26 to FY30, including private sector investment of ₹5.8 lakh crore.
The report stated that asset monetisation under NMP 2.0 is expected to accelerate infrastructure development, enhance private sector participation, and support long-term economic growth by enabling higher capital investment and better utilisation of public assets.
(ANI)
