Monday 24 February 2020

India unveils $1.5 trillion infrastructure investment plan

NEW DELHI, January 2, 2020

India is entering the New Year on an optimistic note for its economy with Finance Minister Nirmala Sitharaman announcing a huge $1.5 trillion plan to build infrastructure in the next five years.

The announcement confirmed Prime Minister Narendra Modi’s vision of a $5-trillion economy for the country by 2024, reported Wam.

Sitharaman said at an year-end press conference yesterday that a committee formed after Modi announced his vision in August would identify the big infrastructure projects, it stated.

These are expected to include new rail links, roads, and social infrastructure necessary to attract critical investments from oil exporting nations and big economies around the world.

Her announcement envisages a National Infrastructure Pipeline, NIP, which aims to build new ports and airports at a cost of Indian rupees 2.5 trillion, projects in which Gulf investors have shown interest previously.

Rs3.2 trillion will be the outline for digital infrastructure projects while Rs16 trillion is planned for irrigation, farming and food processing, stated the report.

Public-private partnerships will be key to today’s announcement with private companies contributing about 25 per cent of the investments. The rest will come from the central government and Indian states, said experts.

The proposals are aimed at boosting the country’s growth rate from the Reserve Bank of India latest growth forecast of five percent for the fiscal year 2019-2020, they added.



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