The infrastructure sector plays a vital role in overall economic growth and macroeconomic stability. After the pandemic outbreak, standardized measures are taken to accelerate the process of economic recovery and enable the economy to get back on its long-term growth path.
Basic infrastructure facilities in the country provide the foundation of growth. Without adequate infrastructure, the economy functions at a suboptimal level and remains distant from its potential and frontier growth trajectory.
Therefore, investment in infrastructure is essential for more rapid and inclusive economic growth.
On the other hand, to boost private investment in infra sector, the government has formed the Public Private Partnership Appraisal Committee (PPPAC) for evaluating projects that come under PPP model.
Further, the government has revamped the Viability Gap Funding (VGF) scheme for Infrastructure sector. By revamping the VGF scheme it would attract more PPP projects and facilitate the private investment in social sectors like Health, Education, Wastewater Management, Solid Waste Management, Water Supply etc.
Despite the severe challenges posed by the pandemic, the Indian aviation industry has continued to get through the crisis demonstrating resilience and the long-term commitment to serve. Moreover, the government launched Vande Bharat Mission which aimed to bring back Indian Nationals to India, who got stuck in foreign countries due to Covid-19 lockdowns. The Vande Bharat Mission is considered one of the largest civilian deportation exercises by any country in recent history.
Talking about Indian Railways, the government has allowed the private players to operate in the railways sector through the PPP model under the "New India New Railway" initiative.
In mining sector, under the Aatmanirbhar Bharat Abhiyan, the government announced major initiative which includes introduction of a seamless composite exploration-cum-mining-cum production regime, and mining blocks are to be offered through an open and transparent auction process besides joint auction of bauxite and coal mineral blocks.
Infrastructure Promotes Inclusive Growth
Infrastructure development promotes inclusive growth and poverty reduction by creating new jobs and economic activities, connecting markets and other economies beyond geographies, and improving access to key facilities and essential services.
Small businesses are extensively spread across the economy and majorly rely on the general infrastructure amenities. Thus, developing general infrastructural facilities may enable small businesses to scale successfully to the next level, generating significant number of job opportunities. This will aid in the alleviation of poverty in developing countries.
On the other hand, infrastructure expansion, such as irrigation, rural electrification, highways, and road transport, would encourage agricultural growth and the establishment of Agro-processing enterprises. These general infrastructure facilities will assist farmers and owners of processing companies in procuring raw materials, and other inputs at minimum cost, also in transporting their goods to markets in large towns and cities.
In conclusion, the availability of first-class infrastructure is must to achieve broad and inclusive growth on a sustainable basis. If the worries on fiscal availability are addressed properly, National Infrastructure Pipeline would be a huge exercise to comprehend the vision of becoming a 5 trillion $ economy by 2024.