Don’t miss the latest developments in business and finance.

Budget stresses on massive infra investments to become USD 5 trn economy

Image
Press Trust of India New Delhi
Last Updated : Jul 05 2019 | 5:05 PM IST

Finance Minister Nirmala Sitharaman Friday outlined a host of measures to boost infrastructure, digital economy and jobs creation to achieve USD 5 trillion economy target and said a massive push to all forms of physical connectivity is helping bridge the rural-urban divide.

Tabling the Modi 2.0 government's maiden budget in Parliament, Sitharaman said infrastructure financing needs have been estimated at around Rs 20 lakh crore (USD 300 billion) a year and proposed to enhance the sources of capital for infrastructure financing including setting up a Credit Guarantee Enhancement Corporation for which regulations have been notified by the Reserve Bank of India.

Terming the connectivity as the lifeblood of the economy, the minister announced a slew of steps to scale up India's infrastructure programmes including augmenting 1,25,000 km of rural roads under the Pradhan Mantri Gram Sadak Yojana at a cost of Rs 80,250 crore and creating a national highways grid.

Stressing the need for an estimated investment of Rs 50 lakh crore for augmenting railways infrastructure, she said that steps were taken to boost infrastructure in sectors like roads, waterways, metro and rail besides emphasising on the measures for a self-reliant aviation industry.

Asserting that physical and social infrastructure has to be built, Sitharaman said: "The common man was served even as major transformational reforms were being rolled out. And for this to continue we need to invest heavily in infrastructure, in digital economy and on job creation in small and medium firms."

Also Read

First Published: Jul 05 2019 | 5:05 PM IST

Next Story