India Needs To Spend $1.4 Tn On Infrastructure To Achieve $5 Tn Economy

To push economic growth and achieve the $5 trillion economy goal, India needs to spend about $1.4 trillion on the infrastructure sector during financial years 2020-2025, said the Economic Survey tabled in Parliament as the Budget session began on Friday.

The Economic Survey 2019-20 said that investment in infrastructure is necessary for the economy, as power shortages, inadequate transport and poor connectivity affects overall growth performance.

"To achieve GDP of USD 5 trillion by 2024-2025, India needs to spend about USD 1.4 trillion (Rs 100 lakh crore) over these years on infrastructure so that lack of infrastructure does not become a constraint to the growth of Indian economy.

"NIP is expected to enable well prepared infrastructure projects that will create jobs, improve ease of living and provide equitable access for infrastructure for all thereby making growth more inclusive", the Survey said.

As per the National Infrastructure Pipeline (NIP), Central Government (39 percent) and State Government (39 percent) are expected to have an equal share of funding of the projects followed by the private sector at 22 percent.

Projects worth Rs 42.7 lakh crore are under implementation.