Investment in infra serves as a catalyst to foster economic development
Investing in infrastructure generates a robust multiplier impact through multiple avenues. As India takes giant strides towards sustainable and inclusive growth, the significance of investment in infrastructure development serving as a vital catalyst for fostering economic development is inevitable, writes Sandeep Upadhyay, MD – Infrastructure Advisory, Centrum Capital Ltd.
Being the fifth largest economy in the world with a nominal GDP of $ 3.75 trillion, India is expected to touch $ 5 trillion GDP by FY27. With a booming stock market which recently touched its all-time high mark and robust inflow of capital from leading FIIs, the Government has been rightly prioritising its efforts to leverage this momentum across core sectors wherein the Infrastructure sector stands out as a key beneficiary. Investing in infrastructure generates a robust multiplier impact through multiple avenues. Credible research suggests that there is a gain of Rs 2.5 to Rs 3.5 in GDP for every rupee spent on infrastructure.