Government to Invest 102 Lakh Crores in 5 Years to Get the Economy Out of Recession

The infrastructure of the country is not yet in a position which can be helpful in fully capitalizing on the economic prospects
Government to Invest 102 Lakh Crores in 5 Years to Get the Economy Out of Recession

The government's plan to spend Rs 102 lakh crore over the next five years on infrastructure means no less than a Sanjeevani herb. The government has set this ambitious target on the report of the Task Force on the National Infrastructure Pipeline. There is no doubt that this step will give a boost to the economy, but there are many challenges in the way of materializing it.

Under this, the target set for investment during the next five years is more than double of Rs 51 lakh crore invested on infrastructure during the last six years. In the proposed scheme, the central and state governments will have to invest 39-39 percent and the remaining 22 percent will be invested by the private sector. For this, major sectors like energy, road construction, railways, urban development, health and education have been identified. Though 42 percent of these schemes have already started to be implemented, the blueprint of 19 percent is ready while 31 percent of the schemes have been conceptualized so far.

The infrastructure of the country is not yet in a position which can be helpful in fully capitalizing on the economic prospects. According to an estimate, by the year 2030, India will need an investment of $ 4.5 trillion in the infrastructure sector. In this episode, this effort of the government will not only give wide benefits to many areas, but it will also support the demand. For example, if demand picks up in basic industries like steel and cement, then employment opportunities will also be created for skilled and unskilled workers. This means that this initiative of the government is going to be fruitful in many ways.

In the current environment, it seems to be crooked. There are many reasons for this. The first is to raise financial resources. The center and states together have to contribute 78 percent. Currently, government tax collection is under pressure due to sustained sluggishness. The private sector is already under debt burden. He is also skeptical about future investments given the sluggish demand. Even if the private sector shows readiness for investment, then will the banks, which are stuck in stranded debts, be ready to provide loans for these projects.

Related Stories

No stories found.
logo
Since independence
www.sinceindependence.com