India should spend USD 1.4 trillion on Infrastructure: Eco Survey

India should spend USD 1.4 trillion on Infrastructure: Eco Survey

Agency News

New Delhi, Jan 31: To achieve GDP of USD 5 trillion by 2024 – 2025, India needs to spend about USD 1.4 trillion (Rs 100 lakh crore) over these years on infrastructure so that lack of infrastructure does not become a constraint to the growth of Indian economy, said the Economic Survey on Friday.

National Infrastructure Pipeline (NIP) is expected to enable well prepared infrastructure projects that will create jobs, improve ease of living and provide equitable access for infrastructure for all thereby making growth more inclusive, the Survey observed. The Survey emphasized that investment in infrastructure is necessary for growth. Power shortages, inadequate transport and poor connectivity affect overall growth performance. Since provision of adequate infrastructure is essential for inclusive growth, India recently launched the NIP for the period FY 2020-2025.

Giving a detailed analysis of the trends in India’s infrastructure sector, the Survey said as per the NIP, Central Government (39 per cent) and State Government (39 per cent ) are expected to have equal share of funding of the projects followed by the private sector (22 per cent). Projects worth Rs 42.7 lakh crore (42 per cent) are under implementation. Financing of the National Infrastructure Pipeline will be a challenge but the Survey hoped that a bouquet of well prepared project will attract from Central and State Government, urban local government, banks and financial institutions, PE funds and private investors, both local and foreign.

The Economic Survey gave an overview of sectoral developments relating to Railways, Road Transport, Civil Aviation, Shipping, Telecom, Petroleum and Natural Gas, Power, Mining, Housing and Urban Infrastructure. The Economic Survey noted that road transport is the dominant mode of transportation in terms of its contribution to Gross Value Added (GVA). In 2017-2018 the share of transport sector in the GVA was about 4.77 per cent of which the share of road transport is 3.06 per cent followed by Railways (0.75 per cent), air transport (0.15 per cent) and water transport (0.06 per cent). Total investment in the roads and highways sector has gone up more than 3 times in five year period of 2014-15 to 2018-19. The Survey marked that during the year 2018-19 Indian Railways carried 120 crore tones of freight and 840 crore passenger making it the world’s largest passenger carrier and fourth largest freight carrier. UNI