Infrastructure development is critical for improving India’s manufacturing competitiveness and achieving higher growth. Despite India’s significant infrastructure investments (about 35% of GDP), the government estimates that it requires US$1.5 trillion in infrastructure investments over the next decade.
Investment in infrastructure is essential for more rapid and inclusive economic growth:
In the light of India’s experience:
1. Pradhan Mantri Awas Yojana- Urban (PMAY-U) (Housing for All by 2022): Helps in Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource, Promotion of Affordable Housing for weaker section through credit linked subsidy, Affordable Housing in Partnership with Public & Private sector
2. The Pradhan Mantri Awas Yojana- Gramin (PMAY-G) (Housing for All by 2022) : aims at providing a pucca house with basic amenities to all houseless householders living in kutcha and dilapidated houses by 2022.
3. UJALA Yojana: The Unnat Jyoti by Affordable LEDs for All was launched in 2015 with a target of replacing 77 cr incandescent lamps with LED bulbs.
4. The National Infrastructure Pipeline (NIP) for FY 2019-25 is a first-of-its-kind, whole-of-government exercise to provide world-class infrastructure to citizens and improve their quality of life. It aims to improve project preparation and attract investments into infrastructure.
5. Gati Shakti scheme or National Master Plan for multi-modal connectivity plan, with the aim of coordinated planning and execution of infrastructure projects to bring down logistics costs.
6. Bharatmala and Sagarmala Projects: Ambitious road and maritime connectivity projects.
Investments in energy, telecommunications, and transport networks directly impact growth, as all types of infrastructure represent an essential input in any production of goods and services. In addition, infrastructure can also reduce the cost of delivered goods, facilitate the physical mobility of people and products, remove productivity constraints, and increase competitiveness.