India has a huge infrastructure deficit in road, rail, ports, power, transport, urban utilities, housing and social infrastructure like hospitals etc. It needs a minimum investment of $ 1.5 trn in a decade (about Rs. 112.50 lac crores). India presently spends about Rs. 10 lac cr per year towards infrastructure, but we need to double this investment. And the more we delay it, the more is the backlog/deficit that gets created, only enhancing the amount needed to be invested. Infra build up has a huge multiplier effect on industries like steel, cement, auto, real estate etc. and also generates a large number of jobs. An infra investment at 1% of GDP increases GDP growth by 2%. At present, due to the infra deficit that we have, our GDP growth is sacrificed by 4-5% p.a. Infra development also ensures that growth is inclusive and is thus considered to be the most productive one. It is for this reason that PM Narendra Modi had announced in his 2019 Independence Day speech from the Red Fort ramparts that his government will invest Rs. 100 lakh crores in infrastructure during the next 5 years, as part of its target of a $5 trn GDP by 2024. In this episode of the Business tit-bits our Business Editor Mr Akhilesh Bhargava shares his take on the matter.
#5TrillionEconomy #GDP #PMModi
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