India aims to become USD 5 trillion economy by 2025. Basic requirement for economic growth is infrastructure, both physical and social. Cognisant of this fact, Prime Minister in his Independence Day 2019 speech announced that India will invest INR 100 lakh crores in infrastructure over the next five years. The direction was set clearly.
Finance Minister constituted a Task Force to draw up ‘National Infrastructure Pipeline’ for FY 2019 to FY 2025. It was chaired by Secretary of Department of Economic Affairs and held first meeting in September 2019. It had wide ranging discussions with stakeholders like banks, financial institutions, infrastructure developers, industry organisations, equity funds and government departments. Finally, on 31 December 2019, the Finance Minister Mrs Nirmala Sitharaman announced creation of National Infrastructure Pipeline with an aim to have total project capital expenditure of over 102 lakh crores by FY 2025.
During this five financial years between 2020 to 2025, there will be huge investment in various sectors of infrastructure of which energy (24%), roads (19%), urban (16%), railways (13%) are major areas. Airports, telecommunication, irrigation, rural infrastructure, water and sanitation, ports, agriculture, food processing and distribution, higher education, schooling, sports, tourism, sports, health and family welfare, industries and internal trade, steel and some other areas will be covered under this ambitious National Infrastructure Pipeline.
This will open up opportunities for domestic and foreign investors for investment in India. This development of social and physical infrastructure will boost economic activities, provide jobs and accelerate economic growth in India. There will be monitoring mechanism for timely implementation of the pipeline. Review meetings and policy interventions will further help in its success.
India is a vast country with over 1.3 billion people. The appetite of economy for investment is huge and potential for growth is incomparable. Various measures to promote economic growth, policy incentives for investors, liberalisation of FDI rules and possibility of attractive return on investment will help the country grow faster in future. The goal of being USD 5 trillion economy will be dependent on successes of such initiatives of the government, for which the whole machinery is at work.