Transport infrastructure development in India has been slow and unsatisfactory due to the excessive dependence on budgetary support from the State and due to the dominance of state controlled enterprises. Future investment requirements need much greater mobilisation of resources than that accomplished in the past. This paper reviews the Indian experience of infrastructure investment allocations, performance of parastatals and major policy makers. It provides a framework for formulating “unbundling strategies” for increased private sector participation in the financing of investment and provision of transport services.