The World Bank has endorsed India’s plans for investment in infrastructure during the next five years. Infrastructure sector analysts see in this endorsement a positive signal from the World Bank and likely assistance from the multilateral financial institution.
“I am not privy to any document with regard to the 12th Five Year Plan. However, the government will have to be ambitious on the development of roads, urban infrastructure, water supply and sanitation, power and agricultural production. The proposed investment is clearly an ambitious one. It also reflects the level of ambition,” World Bank Vice-President (sustainable development) Inger Andersen told Business Standard.
India’s proposed investment of over $1.3 trillion in infrastructure during the 12th Plan period reflected the level of its ambition, said Andersen. She was speaking to Business Standard on the sidelines of the launch of the World Bank report on “Empowering rural India: expanding electricity access by mobilising local resources”.
Andersen’s views are crucial, especially when the government plans to almost double the infrastructure spending to over $1.3 trillion in the 12th Plan from $500 billion in the 11th Plan.
She said India was a global player in politics, finance, infrastructure and information technology. “I fully endorse India’s inclusive growth agenda. Even when there has been increase in growth, there is poverty in the country. Therefore, there is a need for sustainable development and equitable distribution,” she said.
On the issue of subsidy allocation, Andersen said it was not prevailing in India alone, but in other countries, too. “There are well-off people as well as those who cannot afford a single day meal. Subsides are essential. However, the only consideration should be such subsidies be given to the neediest and in a right manner.”