NEW DELHI: Amid gathering talk of an economic slowdown, the Modi 2.0 government’s first economic report card on Thursday to accelerate private investment in the country to create jobs and drive demands. The Economic Survey presented on Thursday presents a blueprint for India’s economy to become $ 5 trillion economy by 2024-25 with continuous annual growth rate of 8%. Private investment in the infrastructure sector is stressed as key to India becoming a $10 trillion economy by 2030, as fiscal constraints are preventing increase in fund-flow from public sector, the Economic Survey 2018-19 said.
In order to create a ten trillion dollar economy by 2032, India needs a robust and resilient infrastructure. “For a smooth and fast travelling, India needs adequate and timely investment in quality infrastructure. In order to create a ten trillion dollar economy by 2032, India needs a robust and resilient infrastructure.
Public investment cannot fund the entire infrastructure investment requirements of the country,” the survey tabled in the Parliament said on Thursday. India needs to spend 7-8 per cent of its GDP on infrastructure annually, which translates into annual infrastructure investment of US$200 billion currently.
However, the country has been able to spend only about US$100-110 billion annually on infrastructure, leaving a deficit of around US$90 Billion per annum. “Given the fiscal constraints that leave less room for expanding public investment at the scale required, there is an urgent need to accelerate the flow of private capital into infrastructure,” the survey said. (Agencies)
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