- The Budget proposal presented by the Union Finance Minister for the financial year 2021-22 has generally been welcomed from all quarters. Financial experts, economists, businessmen, industry leaders, and of course, common citizens have all more or less expressed positive remarks for not only being pragmatic in approach but also considering the reality of the situation to collate far-reaching policy decisions aimed at strengthening the country’s economic growth. It Will help to overcome extremely challenging times in the aftermath of the pandemic induced hardships. There was a vociferous demand for emphasizing infrastructure that has been met in the desired manner.
PC: Srishti P
- As we all are aware, the importance of propping up infrastructure development needs no further emphasis as the sector enacts no less than the role of being a force multiplier and a springboard of economic growth. Note that the construction sector is an all-important industry providing for huge employment opportunities as more than 250 ancillary sectors are closely associated thereby holding the key to ensure growth on expected lines. Failing to provide adequate focus on the infrastructure front would nullify whatever efforts were undertaken by the Government to shore up the economy. Thus, the thrust on the infrastructure front is warranted and rightly so.
- People closely following the Government moves on the same would recollect that building blocks to develop infrastructure big-time were put in place before the pandemic by launching the National Infrastructure Pipeline (NIP) in December 2019. Reports emerging suggest that NIP has a pipeline of 7,400 projects, which requires major funding expansion from both the Government and private sector. This could be realized through three concrete measures viz. creating the necessary institutional structure, monetizing assets, and expanding capital investment through budgets. Of these three measures, monetizing assets is already underway.
PC:
- For the uninitiated, some of the ongoing monetization projects such as the redevelopment of key railway stations in Mumbai and New Delhi have already begun last year bringing to the fore the concrete measures to strengthen the same. It is incumbent for the government to find ways to circumvent possible monopolization concerning public infrastructure monetization. This can be ensured by creating a transparent institutional mechanism by creating a regulator to ensure the envisaged process proceeds as intended.
- To further augment the setting up of a regulator to ensure due process of monetization is successful, it is also equally important to enhance the efficiency of operations. There is no denying the fact that the roadmap envisaged in the Budget to push, expand, and upgrade infrastructure will portend India’s future improvements as well as competitiveness paving way for anticipated high growth rates creating commensurate jobs for an expanding workforce. Thus, the country must gear up in a calibrated manner to traverse a challenging but exciting path allowing the economy to grow organically. All eyes will be keenly observing the FM’s subsequent moves
