In her 8th budget presentation, FinMin Nirmala Sitharaman showcased a promising vision to drive India's economic growth by focusing on building a robust infrastructure which can act as a catalyst for the Viksit Bharat @2047. Today, it is noteworthy to see India maintaining its position as the fastest-growing major economy, amidst the global economic headwinds; a GDP growth forecast between 6.3% and 6.8%, which is in line with IMF projections.
Furthermore, the government has demonstrated its commitment to infrastructure with an allocation of Rs 11.21 lakh crore, building on the previous year's Rs 11.11 lakh crore. Adding to this, a revamped Asset Monetization Plan is set to unlock value from public assets, while a three-year pipeline for PPP projects will further encourage private sector engagement. Also, the UDAN – Regional Connectivity Scheme has been aimed to revolutionize air travel by adding 120 new destinations and targeting 4 crore passengers over the next decade; a focus towards better connectivity across India to fuel the economy. Moreover, when it comes to fostering growth and improving quality of life in rural areas, the extension of the Jal Jeevan Mission to achieve 100 percent coverage until 2028 will be perfectly in line with the theme of 'Sabka Vikas'
Urban Challenge Fund of Rs 1 lakh crore announced to implement the proposals for ‘Cities as Growth Hubs’, ‘Creative Redevelopment of Cities’ and ‘Water and Sanitation’ as announced in the Interim Budget 2024. Allocation of INR 10,000 crore proposed for 2025-26.
Revamped Policies
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Infrastructure related ministries in the Union Government will come up with a 3-year pipeline of projects that can be implemented in PPP mode
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States will be encouraged to do the same, wherein, they can seek support from the IIPDF to prepare PPP proposals
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Rs 1.5 lakh crore is said to be facilitated as 50 year interest free loans to states for capital expenditure and incentives for reforms
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Second Plan for asset monetisation for 2025-30 is set to be launched to drive back capital of Rs 10 lakh crore in new projects
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Jal Jeevan Mission to be extended till 2028 to focus on facilitating quality infrastructure and rural piped water supply schemes
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Urban sector reforms pertaining to municipal services, governance, urban land and planning to be incentivized
Let’s look at what leaders have to say about revamping the overall infrastructure in next pages:
