India needs to scale up investment in transport infrastructure projects from around Rs 4 lakh crore per annum at present to Rs 14 lakh crore by 2032 to achieve over 7 per cent economic growth, according to a report.
The National Transport Development Policy Committee (NTDPC) report says the country needs to increase investment in transport infrastructure like rail, highways, port and airport to Rs 70 lakh crore level in 15th Five Year Plan (2027-32) from Rs 19 lakh crore (nearly Rs 4 lakh crore annually) envisaged in the ongoing 12th Five Year Plan (2012-17).
The panel thinks that achieving 7 per cent economic growth in 12th Plan followed by 9 per cent economic growth till 2032 thereafter, will require massive scaling of investment in transport infrastructure.
It has suggested increasing investment in transport from 2.6 per cent (of GDP) in 11th Five Year Plan (2007-12) to 3.3 per cent in 12th Five Year Plan, and then stabilising that at 3.7 per cent (of GDP) till 2032.
The government had set up NTDPC under the Chairmanship of Rakesh Mohan on February 11, 2010, with the main objective of recommending a long-term National Transport Policy. It has recently submitted its report.
The panel recommends increase in transport infrastructure investment to a level of Rs 30 lakh crore in 13th Plan (2017-22) and to Rs 45 lakh crore in 14th Plan (2022-27).
In absolute terms, the Committee thinks that investment in the infrastructure sector is required to be increased by seven-fold from Rs 10 lakh crore in the the 11th Plan to Rs 70 lakh crore in the the 15th Plan (2027-32).
India is reeling under the persistent slowdown and recorded a decade low economic growth of 4.5 per cent in the previous fiscal.
The Central Statistics Office has estimated that the Indian economy will grow at 4.9 per cent the current fiscal. However, this is contrary to 8 per cent annual average economic growth rate targetted in the 12th Plan document.
Besides, the lack of investment has resulted in slower industrial growth. During April-January this fiscal, the index of industrial production remained flat over the same period in 2012-13.
According to experts, boosting investments particularly in transport infrastructure in required to increase the industrial growth which will ultimately result in higher overall economic growth.
