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Tuesday, October 15, 2024

The Indian Government Takes Comprehensive Measures for Infrastructure Development

On the occasion of the 19th Foundation Day of the India Infrastructure Finance Company Ltd (IIFCL), M P Tangirala, the Additional Secretary of Financial Services, highlighted the government’s extensive efforts towards infrastructure development, citing its significant multiplier effect and pivotal role in the country’s overall progress.

Tangirala emphasized the strong backward and forward linkages of the infrastructure sector and outlined several initiatives undertaken by the government to support its growth. One prominent initiative is the USD 1.3 trillion PM Gati Shakti National Master Plan (NMP), launched in 2021. The PM Gati Shakti aims to bring systemic and effective reforms to the sector, focusing on reducing logistic costs, increasing cargo handling capacity, and minimizing turnaround time.

Another key initiative is the National Infrastructure Pipeline (NIP), which began with 6,800 projects and has now expanded to include over 9,000 projects across 34 sub-sectors. The NIP, covering brownfield and greenfield infrastructure projects with a total outlay of Rs 108.88 lakh crore between 2020-25, plays a crucial role in driving infrastructure development.

Tangirala highlighted India’s resilience amid global turmoil, positioning the country as an engine of growth due to its strong macroeconomic fundamentals and ongoing structural reforms. Various estimates suggest that India is poised to become the world’s third-largest economy by 2030, currently ranking as the fifth-largest economy globally, following the US, China, Japan, and Germany.

Addressing the stability and resilience of India’s financial system, Tangirala pointed out sustained growth in bank credit, low non-performing assets, and ample capital. He also highlighted the incorporation of technology and increased digitization, which enhance the reach and depth of financial intermediation, creating new opportunities for growth and financial inclusion.

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