A push to infrastructure

The focus is very much clear for this government to take the economy from the current $2.7 trillion to $5 trillion within the next few years. The blueprint has been laid down by the finance minister in the budget. A multi-pronged approach riding on the strong infrastructure investments will be able to achieve the desired target by focusing on infrastructure development, investing in the new-age digital economy, financial sector reforms, and several long-term structural reform measures.

The government intends to invest Rs 100 lakh crores in the infrastructure sector in the next five years and with this announcement, the government will be the biggest spender on infrastructure compared to private investors. This will contribute to the nation's economic growth and enhance the ease of doing business for investors. With a vision to make India a $5 trillion economy and to support India's long-term growth story, the Modi 2.0 government is focused on investing massively on building infrastructure. To take India into the major league and stand out as a bright spot in the world economy, the government is leaving no stone unturned to boost the economy via infrastructure investments and this will have multiplier benefits including the creation of additional jobs at various levels.

The importance placed by the government on nation-building, creating employment along with a special emphasis on building last-mile connectivity is reflected in its commitment to heavy investment in infrastructure over the next five years. The infrastructure fabric of the country will get momentum through the development of railways, roads, aviation, ports, smart cities, power, and intra-city connecting networks like metro rail.

In the railway sector, which is one of the cheapest modes for goods transportation, the government plans to mobilise Rs 50 lakh crore investments for the development of its Infrastructure by 2030. Between 2018 and 2030, the amount will be spent towards connectivity and expansion of the railway sector. Also, this expansion drive will enhance employment opportunities for the youth of the country and help boost India Inc's last-mile connectivity, which will enable better mobility infrastructure for passengers and goods. All these will result in growth and expansion of trade, investment and business across the country.

The government has proposed to prepare blueprint for the regional airports to connect various towns and cities across India. Currently, under the UDAN scheme, more than 100 airports are operating in India. All this will lead to inclusive national economic development, boosting the regional connectivity and giving traction to fiscal growth.

The government plans to launch Phase 2 of Bharatmala Scheme. The Road Transport and Highways Ministry aims to develop about 35,000 kms road in Phase-I, at an estimated cost of Rs 5,35,000 crore to provide seamless connectivity to the interior and backward areas and borders of the country. The outlay on metro projects has increased from Rs 14,265 crore to Rs 17,714 crore. Around 1.25 Lakh kms of road length will be upgraded under the Pradhan Mantri Gram Sadak Yojana Phase 3 at an estimated cost of Rs 80,250 crore.

To harness India's 7,500 km long coastline, the Sagarmala Scheme will look into the development of ports and related infrastructure to reduce logistics cost for exports and domestic trade with minimal infrastructure investment, which will increase the efficiency of supply chain sector. The project aims to drastically reduce the logistics cost in India and make our industries more competitive. In India, the cost of logistics in the total business is in the range of 14-16 per cent compared to around 8-10 per cent of the total business cost in developed countries.

The amount spent by the Modi government in its first term is higher than the total amount spent post-Independence. All these announcements concerning the overall infrastructure sector are pro-growth, realistic and backed with a plan. Infrastructure is the foundation of a strong economy of any country and infra-investment would always have an enhanced impact on supply chain connectivity,

productivity, rural-urban gap and similar other socio-economic aspects. All these multiplying factors will spill over in improving the fiscal opportunities and, eventually, growth of a country.

(The author is President, ASSOCHAM. The views expressed are strictly personal)