Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDIs in the construction development sector (townships, housing, built up infrastructure and construction development projects) and construction (infrastructure) activities stood at US$ 25.93 billion and US$ 23.99 billion, respectively, between April 2000 and December 2020.
Government Initiative and investment
In Union Budget 2021, the government has given a massive push to the infrastructure sector by allocating Rs. 233,083 crore (US$ 32.02 billion) to enhance the transport infrastructure. The government expanded the ‘National Infrastructure Pipeline (NIP)’ to 7,400 projects. ~217 projects worth Rs. 1.10 lakh crore (US$ 15.09 billion) were completed as of 2020. The key highlights of the Budget 2021 are as follows:
The infrastructure sector has become the biggest focus area for the Government of India. India plans to spend US$ 1.4 trillion on infrastructure during 2019-23 to have a sustainable development of the country. The Government has suggested investment of Rs. 5,000,000 crore (US$ 750 billion) for railways infrastructure from 2018-30.
India and Japan have joined hands for infrastructure development in India's Northeast states and are also setting up an India-Japan Coordination Forum for Development of Northeast to undertake strategic infrastructure projects for the region.
Note: Conversion rate used for April 2021 is Rs. 1 = US$ 0.01334
References: Media Reports, Press releases, National Infrastructure Pipeline, Union Budget 2021-22, Ministry of Commerce and Industry, Economic Survey-2020-21
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
India has the third largest road network in the world spanning over 3.3 million km.
India is the 11th largest insurance market worldwide, as o...
The Micro Small and Medium Enterprises (MSMEs) sector is a...
COVID-19 and the subsequent, lockdown have dented the economy ...
India’s space programme is one of the most well...
The average annual water availability in any region largely de...
The COVID-19 pandemic has altered the way businesses opera...