Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
2-min read

Economic Survey Reveals India Will Have to Double Infra Investment to Fulfil $10 Trillion Economy Dream

The Economic Survey said in order to create a $10 trillion economy by 2032, India needs a robust and resilient infrastructure and public investment cannot fund the entire infrastructure investment requirements of the country.

News18.com

Updated:July 4, 2019, 8:44 PM IST
facebookTwitterskypewhatsapp
Economic Survey Reveals India Will Have to Double Infra Investment to Fulfil $10 Trillion Economy Dream
Representative image.

A robust and resilient infrastructure is fundamental and essential for the country’s budding industries, the Economic Survey tabled in the Parliament on Thursday noted.

The eight core infrastructure supportive industries that include the road sector, railways, civil aviation, telecom, shipping, petroleum, power, housing and smart cities have achieved an overall growth rate of 4.3 per cent during 2018-19, according to the Economic Survey 2019.

It said road coverage grew at the rate of 30 km per day in 2018-19 as compared to 12 km per day in 2014-15. Rail freight and passenger traffic grew by 5.33 per cent and 0.64 per cent, respectively in 2018-19 as compared to 2017-18.

Total telephone connections in India touched 118.34 crores in 2018-19. The installed capacity for electricity increased from 3,44,002 MW in 2018 to 3,56,100 MW in 2019.

While India has invested in its infrastructure over the years, the challenge is to mobilize adequate investment in infrastructure sector which runs into several trillions of dollars, as per the survey.

It said in order to create a $10 trillion economy by 2032, India needs a robust and resilient infrastructure and public investment cannot fund the entire infrastructure investment requirements of the country.

Therefore, the real challenge lies in bringing adequate private investment across the country with the collaboration of the public sector.

“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,” it noted.

One of the challenges facing the sector is to devise a comprehensive resolution/ settlement option for projects which are either stuck-up mid-way or wherein the arbitral disputes/claims have not been settled. The need is to establish an institutional mechanism to deal with the time-bound resolution of disputes in infrastructure sectors.

It asserted that India needs to spend 7-8 per cent of its GDP on infrastructure annually, that translates into annual infrastructure investment of $200 billion currently. India has been able to spend only about $100-110 billion annually on infrastructure, leaving a deficit of around $90 billion per annum.

With the aim of boosting investment in infrastructure, the National Investment and Infrastructure Fund has been created with a capital of approximately Rs 400 billion to provide investment opportunities to commercially viable projects, it noted.

In addition, a Credit Enhancement Fund for infrastructure projects for increasing the credit rating of bonds floated by infrastructure companies is going to be launched in the country.

A new Credit Rating System for infrastructure projects, based on Expected Loss approach, has also been launched which seeks to provide additional risk assessment mechanism for informed decision making by long-term investors. Further, measures like infrastructure investment trusts and Real Estate Investment Trusts have been formulated to pool investment in infrastructure, it notes.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 47.40 15.47
Indiabulls Hsg 197.95 14.39
Reliance 1,396.50 1.76
SBI 265.45 3.67
Zee Entertain 264.45 1.85
Company Price Change %Gain
Yes Bank 47.40 15.19
Indiabulls Hsg 197.15 14.03
RBL Bank 289.85 12.32
Tata Motors 138.15 9.82
HUL 2,107.80 1.74
Top Gainers
Company Price Change %Gain
Yes Bank 47.40 15.47
Tata Motors 139.50 10.85
Eicher Motors 20,491.85 6.61
IndusInd Bank 1,340.10 5.15
SBI 265.45 3.67
Company Price Change %Gain
Yes Bank 47.40 15.19
Tata Motors 138.15 9.82
IndusInd Bank 1,339.80 5.13
SBI 265.45 3.73
Bajaj Auto 3,110.30 2.96
Top Losers
Company Price Change %Gain
Vedanta 148.30 -1.07
Grasim 724.55 -0.86
TCS 2,030.95 -0.75
HCL Tech 1,093.05 -0.71
UltraTechCement 4,260.45 -0.58
Company Price Change %Gain
HCL Tech 1,089.45 -1.04
Vedanta 148.15 -1.04
Power Grid Corp 197.70 -0.50
Kotak Mahindra 1,601.00 -0.31
Infosys 769.10 -0.30

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results