India’s economy could receive a major boost of nearly Rs 40 lakh crore over the next five to ten years through the government’s asset monetisation drive under the National Monetisation Pipeline (NMP) 2.0., according to a report released by NITI Aayog.
NMP 2.0 to boost India's GDP by Rs 40 lakh crore in 5-10 years: NITI Aayog. (Representational Image)
India’s economy could receive a major boost of nearly Rs 40 lakh crore over the next five to ten years through the government’s asset monetisation drive under the National Monetisation Pipeline (NMP) 2.0, according to a report released by NITI Aayog. This projection is based on increased infrastructure investment and the multiplier effect of capital expenditure.
The second phase of the National Monetisation Pipeline was launched on Monday by Union Finance Minister Nirmala Sitharaman. The initiative is expected to unlock value from existing public infrastructure assets and reinvest the proceeds into new infrastructure projects, thereby accelerating economic growth.
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Under NMP 2.0, the Central Government is expected to generate approximately Rs 4.6 lakh crore from asset monetisation between FY26 and FY30. Of this, around 70 per cent—equivalent to Rs 3.2 lakh crore—is likely to be spent directly on publicly funded infrastructure projects.
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The remaining Rs 1.4 lakh crore is expected to be invested in Public-Private Partnership (PPP) projects. With an assumed leverage ratio of 1:2, this could translate into an investment of about Rs 4.2 lakh crore, subject to favourable financial conditions.
In addition, proceeds accruing to Public Sector Undertakings (PSUs) are projected to play a significant role. The report estimates that Rs 1.6 lakh crore in PSU proceeds could be leveraged to generate nearly Rs 4.9 lakh crore in additional investments, expanding capital expenditure plans across sectors.
Taken together, Rs 6.2 lakh crore in combined Central Government and PSU proceeds could potentially drive infrastructure investments worth approximately Rs 12.2 lakh crore.
Applying a capital expenditure multiplier of 3.25 to the projected Rs 12.2 lakh crore investment, the report estimates a cumulative GDP increase of around Rs 40 lakh crore over the next decade, suggests the NITI Aayog report.
NMP 2.0 targets asset monetisation worth Rs 16.72 lakh crore across 12 sectors during the five-year period from FY26 to FY30. This includes an estimated Rs 5.8 lakh crore in private sector investment.
According to NITI Aayog, NMP 2.0 is designed to accelerate infrastructure development, enhance private sector participation, and strengthen India’s long-term growth trajectory by ensuring more efficient utilisation of public assets and higher capital investment.
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