The Role of Public–Private Partnership in Infrastructure Development

Abstract

India is among the fastest-growing emerging economies, with a current GDP of approximately USD 3.4 trillion and an ambitious target of achieving USD 5 trillion by 2027. Achieving this goal requires sustained investment in infrastructure—an essential driver of economic expansion, productivity enhancement, and regional connectivity. However, budgetary constraints limit the government’s capacity to finance large-scale infrastructure independently. Consequently, Public–Private Partnerships (PPP) have emerged as a strategic mechanism to mobilize private sector expertise, financing, and operational proficiency. This paper explores the growing relevance of PPP in India, identifies global lessons, provides a theoretical framework for assessing financial viability through WACC, NPV, and IRR, and evaluates sector-wise progress in roads, airports, and ports. The paper also highlights gaps in risk allocation, institutional capacity, and project preparation, offering insights for strengthening PPP-based development.