The minister said government spending for railways, roads, highways, waterways and airport, coupled with investment in social sector will create jobs, boost domestic demand and create more industries in the country. “These steps will ultimately make India a $5 trillion economy (by 2024-25)," Javadekar said.
Spending on infrastructure is imperative to bring India back to a high growth trajectory. The economy grew at its slowest pace in six years at 5% in April-June, amid sluggish demand, slowdown in the automobile sector, lack of private investment and job losses.
Watch: 100 Days of Modi government 2.0: The 5 big decisions
Towards this, the government has been taking steps to bring India back on the growth trajectory and achieve the target turning India into a $5 trillion economy by 2024-25. On Saturday, the finance ministry said it has set up a task force to identify technically and economically viable infrastructure projects that can be kick started in the current financial year and can be included in the ₹100 trillion plan for the sector in the next five years.
“Government has announced its intention to invest ₹100 lakh crore in infrastructure over the next five years. To this end, it is proposed to set up an expert committee to study the current situation relating to long-term finance and our past experience with development finance institutions, and recommend the structure and required flow of funds through development finance institutions," finance minister Nirmala Sitharaman had said while presenting the FY20 Union Budget in July.
Between 2008 and 2017, the government spent $1.1 trillion on infrastructure. The last five years saw massive spending on roads, railways, water, irrigation and urban infrastructure. Connectivity, both physical and digital, which has a multiplier effect on the economy, is a key development goal for the NDA government.
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Never miss a story! Stay connected and informed with Mint.
our App Now!!