The country's needs to step-up annual infrastructure investment so that lack of infrastructure does not become a binding constraint on the growth of the Indian economy, Nirmala Sitharaman, Finance Ministersaid in her statement on the contents of the National Infrastructure Pipeline (NIP) released on the New Year's Eve in New Delhi. Sitharamanalso indicated that government will examine the recommendations of the task force for early action.
To achieve the GDP of $5 trillion by 2024-25, India needs to spend about Rs 140 trillion on infrastructure over the next five years. To achieve this objective, a high-level task force was constituted to draw up NIP for each of the years from FY 2019-20 to FY 2024-25 with the approval of the finance minister. Since September 2019, the task force held several meetings with various departments and ministries, companies, financial institutions, private equity funds and industry associations to seek information as well as suggestions on reforms required in the infrastructure sector.
This first of its kind exercise is expected to be followed up by a periodical review process. NIP will enable a forward outlook on infrastructure projects which is expected to create jobs, improve ease of living, and provide equitable access to infrastructure for all, thereby making growth more inclusive. The NIP pipeline includes both economic and social infrastructure projects.On the basis of the information compiled, total project capital expenditure in infrastructure sectors in India during the fiscals 2020 to 2025 is projected at over Rs 102 trillion.During the fiscals 2020 to 2025, sectors such as energy (24 per cent), roads (19 per cent), Urban (16 per cent), and Railways (13 per cent) amount to around 70 per cent of the projected capital expenditure on infrastructure in India.