A Push to Infrastructure.
With the GDP growth falling to a six-year low to 5% in the April-June
2019 quarter, taking significant steps to revive growth in the country is of
crucial importance and spending on infrastructure is an effective way to do so.
Availability of quality infrastructure is a pre-requisite to achieve broad-based and inclusive growth on a sustainable basis. With the government’s objective of achieving a GDP of USD 5 trillion by 2024-25 in mind, the finance ministry has said that India needs to spend $ 1.4 trillion over these years in infrastructure.
To implement this, the finance ministry has set up a 6 member task force to identify technically and economically viable infrastructure projects that can be kick started in the current financial year. The task force will be headed by the finance ministry’s economic affairs secretary, along with five other officials from policy think tank NITI Aayog and senior government officials.
Availability of quality infrastructure is a pre-requisite to achieve broad-based and inclusive growth on a sustainable basis. With the government’s objective of achieving a GDP of USD 5 trillion by 2024-25 in mind, the finance ministry has said that India needs to spend $ 1.4 trillion over these years in infrastructure.
To implement this, the finance ministry has set up a 6 member task force to identify technically and economically viable infrastructure projects that can be kick started in the current financial year. The task force will be headed by the finance ministry’s economic affairs secretary, along with five other officials from policy think tank NITI Aayog and senior government officials.
The task force will –
1.
Estimate annual infrastructure investment costs
2.
Guide government departments in identifying appropriate sources of
financing
3.
Suggest measures to monitor the projects so that cost and time overruns
can be avoided.
Honble Prime Minister Shri Narendra Modi in his Independence Day speech
had said that Rs. 100 lakh Cr would be invested on infrastructure in the next
five years and would include social and economic infrastructure projects.
Infrastructure development is critical for economic development. It has a domino effect on the other sectors of the economy as it helps improve productivity by removing infrastructural bottlenecks, which impede economic growth. A developing country like India has to invest in the infrastructure sector for future growth. The push of the present government in improving infrastructure is thus a step in the right direction of ensuring lack of infrastructure does not become a binding constraint on the growth of the Indian economy.
Infrastructure development is critical for economic development. It has a domino effect on the other sectors of the economy as it helps improve productivity by removing infrastructural bottlenecks, which impede economic growth. A developing country like India has to invest in the infrastructure sector for future growth. The push of the present government in improving infrastructure is thus a step in the right direction of ensuring lack of infrastructure does not become a binding constraint on the growth of the Indian economy.
Sources:
Various publications
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