Finance Minister Nirmala Sitharaman has approved Rs 102 lakh crore for infrastructure projects that will be implemented in the next five years. Addressing a press conference, she said Prime Minister Narendra Modi had made an announcement about investing 100 lakh crore in infrastructure on Independence Day.
The center’s move came at a time when India is in the midst of a significant economic slowdown. India’s economy grew at its slowest pace in more than six years in the July-September period, down to 4.5 percent from 7.0 percent a year ago, according to government data. So, this huge investment will help India to revive the economy and will help India to become a $5 trillion economy by 2025.
The minister further said that this pipeline will add another Rs 3 lakh crore of projects. FM Sitharaman stated this project will help India to achieve a huge target of becoming a $5 trillion economy by 2025. The target was set up by Modi-led-government.
A task force had been formatted by the finance minister which would be headed by Economic Affairs Secretary to prepare a road map for the “National Infrastructure Pipeline” from 2019-20 to 2024-25 under the 100 lakh crore infra plan.
The minister said the investment will happen in sectors such as power, railways, urban irrigation, mobility, education, and health.
Nearly Rs 25 lakh crore has been lined up for energy project, the minister said, adding that another Rs 20 lakh crore in the road and nearly Rs 14 lakh crore railways projects have been lined up.
Reform suggestions by various working groups under the infrastructure task force will be taken into consideration with all earnestness. It is believed that India would need to invest $4.5 trillion on infrastructure by 2030 to sustain its growth rate.