Budget 2021: Better And Augmented Infrastructural Amenities Required To Support India's Economic Growth

Since the economy has been affected by Covid-19 pandemic, a much higher growth required in FY22 to make up for the lost year FY21. Chief Strategy Officer of Tata Projects Ltd., Himanshu Chaturvedi explains budget expectations.

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New Delhi: "As per the last Economic Survey, India needs to invest $1.4 trillion on infrastructure as it aspires to become a $5 trillion economy by 2024-25. India fundamentally needs better and augmented infrastructural amenities to support its economic growth and uplift the lives of its citizens. This massive investment requirement presents the potential for infrastructure sector in years ahead.  

During last year, as Covid-19 battered Indian economy and affected livelihood, Government of India provided liquidity support to the Construction Industry by modifying contractual payment terms and faster settlement of dues. This facilitated quick rebound of the industry and return of migrant labour to the project sites. As the second largest employer in country, providing employment to 51 mn people, construction sector not only provides livelihood but also acts as force multiplier by pulling up other industries and economy.

With Covid-19 impact still being faced on the economy and a much higher growth required in FY22 to make up for the lost year FY21, we would expect Government to continue supporting construction sector by advancing projects under National Infrastructure Pipeline for implementation, easing payment terms and settling old dues & disputes. Better liquidity with the industry will help it in contributing with earnest in nation building and support MSME which depends significantly on the industry.

We expect higher allocation for important infrastructure segments such as Integrated Water Resource Management, Housing, Railways, Metros, Highways, Airports and Energy. We are enthused by “Make in India” initiative and various sector specific Production Linked Incentive Schemes. These will require modern industrial infrastructure facilities and associated infrastructure, providing further fillip in the construction sector.”

[Author Himanshu Chaturvedi is the Chief Strategy Officer of Tata Projects Ltd.]

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