In one of my blogs I made a mention of the fact that India dreams to be a $5 trillion economy. And for that, I think, planning has already started. Plans for the next few years have been chalked out in an attempt to boost the infrastructural face of our country. A project named - National Infrastructure Pipeline has emerged recently. This project has been put forward by a task force which aims at not just developing new infrastructure, but also improving the existing ones. In this context, focus has been made on both social and economic infrastructure.
Before elaborating in the National Infrastructure Pipeline, I would like to describe what constitutes physical and economic infrastructure. Physical infrastructure covers roads, railways, aircrafts, airports, power plants, etc. These infrastructures are required for any economy to function and survive. Economic infrastructure includes structures such as hospitals, educational institutions, universities, welfare colonies, etc. Economic infrastructure is as useful as physical infrastructure and aids in the operation and development of various sectors of an economy.
Reiterating my earlier blog on jobless growth, I have focussed on the fact that India has gone through phases of jobless growth. This was because major investments were made in the service sector with no investment in the infrastructural arena being made. This abandoned the growth of the manufacturing sector.
Coming to the focal point now, investments in the infrastructural sector has been made but they have not been adequate somehow. In the past 10 years, an investment of $1.1 trillion has been made. The present scenario demands investing more amount in almost half the time. It will only be then that the dream of $5 trillion economy can be achieved. As per my knowledge gained from different sources, India needs to invest $1.4 trillion in the next five years. This amount is approximately 1.28 times of the investment made in the last 10 years.
Till now we have understood that a huge amount of fund will be needed in the infrastructural development. How will such a hefty amount be managed? The sources of financing must be identified. By saying that I mean, to keep a check on the inflow of funds and the added expenditure. In order to attract funds, robust marketing would play a major role. This would include bringing in private investments from India Investment Grid and National Investment and Infrastructure Fund. The two agencies would help connect potential investors to promotors across India. These promotors are basically confined and inclined to project promotion.
I, as a student of PGDM, think the National Infrastructure Pipeline will create more jobs. By doing this it would address one of the most blazing problem of today’s time. It will also improve the ease of living as can be clearly deduced by infrastructural development. It would also facilitate equitable access to infrastructure wherein more people would have access to better roads and railways, good schools etc. This shall make growth all inclusive.
PGDM Batch 2019-21
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