India needs to spend $1.4 trillion in infra sector in next 5 years: FM

at 7:13 pm

New Delhi (NVI): Finance Minister Nirmala Sitharaman today unveiled contours of the National Infrastructure Pipeline (NIP), saying the country will need to spend around $1.4 trillion over the next five years on the sector to become a 5 trillion dollar economy.

Between the financial years 2008 and 2017, about $1.1 trillion were invested on infrastructure.

“The challenge is to step up annual infrastructure investment so that lack of infrastructure does not become a binding constraint on the growth of the Indian economy,” Sitharaman said addressing a press conference here.

She said Prime Minister Narendra Modi, in his Independence Day 2019, speech had highlighted that Rs.100 lakh crore would be invested on infrastructure over the next five years, including in social and economic infrastructure projects.

Subsequently, to achieve this objective, a Task Force was constituted to draw up the National Infrastructure Pipeline (NIP) for each of the years from FY 2019-20 to FY 2024-25 with the approval of the Finance Minister.

As per the NIP, total capital expenditure in infrastructure sectors in India during the fiscals 2020 to 2025 is projected at over Rs 102 lakh crore.

During the fiscals 2020 to 2025, sectors such as Energy (24%), Roads (19%), Urban (16%), and Railways (13%) amount to around 70% of the projected capital expenditure in infrastructure in India.

Out of the total expected capital expenditure of Rs. 102 lakh crore, projects worth Rs 42.7 lakh crore (42%) are under implementation, projects worth Rs 32.7 lakh crore (32%) are in conceptualization stage and rest are under development.

It is expected that projects of certain states, which are yet to communicate their pipelines, would be added to the pipeline in due course.