Infrastructure and investment are given major boosts in the budget for 2023.
Under the ‘Saptrishi’ mantras, Finance Minister outlined seven main targets of the Union Budget 2023. Infrastructure and investment are one of these goals.
Investments have a significant multiplier impact. They increase mobility, promote commerce, create jobs, and increase overall economic production. “Capital investment spending is being hiked substantially for the third year in a row by 33% to 10 lakh crore ($122 billion), which would be 3.3 percent of GDP,” according to the budget. This is over three times the amount spent in 2019-20.” This will not only attract private investment, boosting economic viability and employment generation but will also act as a buffer against international challenges.
This is supplemented by a one-year extension of the 50-year interest-free loan to state governments to encourage infrastructure investment and incentivise complementing policy initiatives, with a considerably increased expenditure of 1.3 lakh crore ($16 billion).
The Infrastructure Finance Secretariat is being developed to improve prospects for private investment in infrastructure. The secretariat will work with all stakeholders to encourage increased private investment in infrastructure, including trains, highways, urban infrastructure, and power, which are heavily reliant on public funds. A committee of experts will also study a Harmonized Master List of Infrastructure to suggest the categorization and finance system.
India has grown to become the world’s third-largest aviation market. The UDAN Yojana has been quite helpful in this respect. To give the aviation sector a boost, fifty new runways, helipads, water airbases, and advanced landing fields will be reopened to improve regional air connectivity.
One hundred essential transport infrastructure projects for last and first-mile connections for ports, coal, steel, fertiliser, and food grains industries have been highlighted to significantly boost India’s logistics industry. These budget measures expand on the government’s National Infrastructure Pipeline (NIP), as well as other efforts such as ‘Make in India’ and the production-linked incentives (PLI) programme, to boost infrastructure expansion.
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