India Takes Asean Ties To Next Level, Invites Investment In Infra Sector
The infrastructure sector is one of the key drivers of any economy. In India, the sector was given an allocation of $ 61.92 billion in Budget 2017-18, the fast-paced development of it is expected to propel the growth numbers in the country. Finance Minister Arun Jaitley, speaking at the Asean-India Business and Investment Meet, said India's growth rate has picked up in the past 25 years and investors look at the prospects of country's economic growth over the next two to three decades. He then invited the Asean nations to invest in India's infrastructure and services, saying the country is getting globally integrated in terms of trade and investments.
"There is an infrastructure deficit that we have in India. We want India's domestic manufacturing to grow. In services sector we offer a great potential in terms of investment," Jaitley was reported as saying.
According to Jaitley, the investment would expand economic activities among nations, create more jobs, prosperity and let the nations grow on the grounds of mutual trade.
There are many infrastructure projects that India is working on aggressively, making heavy investments and also, inviting Foreign Direct Investment (FDI).
Here are some of the key infra projects that India is riding high on:
Road transport and highways: Under road transport and highways, there are 91 projects in progress with a cumulative expenditure of $8.7 billion. According to a report by India Brand Equity Foundation (IBEF), an outlay of Rs 6.92 trillion was approved by the Centre in October 2017. Under this, a road network of 83,677 km will be constructed over the next five years. This also includes the ambitious Bharatmala projects worth Rs 5.35 trillion, the Srinagar-Leh tunnel, the Special Accelerated Road Development Programme for North East and the expansion of national highways to 50,000 km by 2019. These projects are expected to accelerate connectivity across the country, and promote trade and better economy.
Railways: With 33 projects being taken up with a cumulative expenditure of $3.81 billion, railways is another key infrastructure that connects the remotest areas of the country. Among many development projects, the Ministry of Railways plans to earn Rs 15,000 crore in next 10-20 years through a rail display network (RDN), enabling real-time information to passengers. Also, all the Indian Railways trains are expected to become electric by 2022, resulting in an annual savings of Rs 11,500 crore.
Power: Power generation has garnered the maximum attention as Prime Minister Narendra Modi aims to provide ghar ghar bijli. With 73 projects in pipeline, the cumulative expenditure on this sector stands at a whopping $16.63 billion. According to the IBEF report, the sector is expected to offer investment opportunities worth $300 billion over next 10 years. Some of the key projects include electricity to every household, the affordable LED bulbs scheme and the recently introduced solar-rooftop scheme under the National Solar Mission.
Construction development: According to the Department of Industrial Policy and Promotion (DIPP), the FDI received in the Construction Development sector, including townships, housing, built-up infrastructure and construction development projects from April 2000 to March 2017 stood at $ 24.3 billion. Under this, the government's two key projects are taking shape. This includes the Pradhan Mantri Awas Yojana, where in the government aims to provide housing to all by 2022, constructing affordable housing for lower-income group, middle-income group I and middle-income group II categories. This scheme targets both urban and rural areas of the country. On the other hand, there is the Smart Cities Mission, where in the government aims to build 100 smart cities across the country. Under this project, cities will be developed into model cities of future, equipped with the latest-in-technology services for the residents.
The Asean Summit 2018 will be held at the national capital from January 25-January 26, coinciding with India's Republic Day celebrations. The delegation of leaders from the Asean countries, including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, has already arrived in Delhi. These leaders will also attend the Republic Day celebrations at the India Gate on January 26.
With inputs from Housing News