India Vision For 2047 $40 Trillion Economy Blueprint
Infrastructure development is the most important part of a developing
economy, with this stance India will become a developing ecaonomy to a developed
economy. Substantial infrastructure is most important for boosting in economy.
With the influence of a pandemic, India stimulated making digital infrastructure
accessible to all of humankind. Digital infrastructure is the need of the hour
for achieving India's growth expansion.
It is a crucial pillar for making good governance for the sector. Physical
infrastructure makes a solid foundation for good governance. Apart from this
both physical and digital infrastructure is the need of time.
A strong manufacturing unit is always on the ground with a strong physical
infrastructure. These three aspects of infrastructure development are given a
strong push by Budget 2023, and when combined, they speed up inclusive growth.
In addition to building essential physical infrastructure and enhancing
connectivity that will speed up the movement of people and goods, the targeted
investments will also generate jobs, encourage private investment, and act as a
buffer against global headwinds.
Let's Figure Out The Blueprint Of India Expansion
India created milestones in making a strong infrastructure like the Chenab
Bridge in Jammu and Kashmir. This is a very challenging infrastructure project
due to the highest altitudes. This project gives an introduction to India's huge
talent and Indian engineering landmark with strong and right leadership. The
capital investment allocation for infrastructure in the Budget 2023-24 is being
raised by 33% to Rs. 10 lakh crore (US$ 122 billion), or 3.3% of GDP. A capital
outlay of Rs. 2.40 lakh crore (US$ 29 billion) has been allocated for the
Railways in the Union Budget 2023-24, which is the greatest outlay ever and
nearly 9 times the amount made in 2013-14.
Introduced in 2019, the National infrastructural Pipeline (NIP) focuses on
social and infrastructural projects, including energy, transportation, and urban
development projects, totaling INR 102 lakh crores. Through its "National
Infrastructure Pipeline," India intends to invest US$ 1.4 trillion in
infrastructure over the next five years. Infrastructure-related operations made
about 13% of the US$81.72 billion in total FDI inflows in FY21. To realize the
goal of housing for everybody by 2022, India will need to build 43,000 homes per
day till that time.
Under the Pradhan Mantri Awas Yojna scheme (PMAY-Urban), 62.21 lakh houses have
been finished as of August 22, 2022, 103.01 lakh houses have been grounded, and
122.69 lakh houses have been sanctioned. The private sector contributes 21%,
with the contributions from the Center and States being roughly equal at 39% and
The PM Gati Shakti Master Plan, which is intended to enhance India's logistics
network, complements NIP. The Indian government highlighted the need for higher
infrastructure spending in the budget for 2023�24 and nearly tripled its
spending on infrastructure from 2019-20 to 3.3% of GDP. For 100 projects deemed
essential to enhancing the overall multimodal logistics infrastructure, the
budget has allotted INR 75000 crores. For FY24, the Indian Railways anticipates
generating a total of Rs. 2,64,600 crore (US$ 32.17 billion) in income from
traffic. India's logistics market is predicted to develop at a CAGR of 6.28% to
reach US$ 410.75 billion in 2022 and US$ 556.97 billion by 2027.
Within the next five years, India wants to drop its logistics cost from 14% of
GDP to 8% of GDP, or a reduction of around 40%, and move up to the 25th position
on the Logistics Performance Index. The federal government has extended the
50-year interest-free loan period to state governments to facilitate
infrastructure investments and encourage complementing policy actions in
This will improve coordination between the federal and state governments. The
government said that an Urban Infrastructure Development Fund (UIDF) will be
established with an annual expenditure of INR 10,000 crore to build urban
infrastructure in Tier 2 and Tier 3 cities using the shortfall in priority
sector financing. The federal government has urged state governments to
establish reasonable user fees when using the UIDF by using tools provided by
the 15th Finance Commission as well as current programs.
In December 2022, AAI and other airport developers set a capital outlay goal for
the airport industry of roughly Rs. 98,000 crore (US$ 11.8 billion) over the
following five years for, among other things, the enlargement and renovation of
current terminals, the construction of new terminals, and the strengthening of
runways. India presently boasts the fifth-largest metro network in the world,
and it will soon surpass developed nations like South Korea and Japan to take
over third place.
As of September 2022, the 810 km metro rail network was in operation in 20
cities. After China's 98 km and Japan's 28 km, the Mumbai monorail is the
third-longest route in the world at approximately 20 kilometers. For the entire
development of society, infrastructure development involves the participation of
many parties. As a result, the Public-Private Partnership (PPP) method is
primarily used in the Indian infrastructure industry.
The Department of Economic Affairs claims that India has adopted a methodical
strategy to develop a strong PPP program for the "delivery of high-priority
public utilities and infrastructure." According to the World Bank, India's
program is one of the largest in the world, with "close to 2000 PPP projects in
various stages of implementation."
In a public-private partnership (PPP), infrastructure is built under the
"Build-Operate-Transfer (BOT)" model, and the private sector is rewarded for
efficiently constructing and maintaining the infrastructure to increase its use
and generate money.
Over the next ten years, hundreds of new cities will be created. The demand for
urban freight is expected to rise by 140% during the following ten years.
India's growing e-commerce supply chains spend 50% of their entire logistics
budget on final-mile freight transit in their cities. By 2022, India is
anticipated to overtake China as the third-largest building market in the world.
By 2025, the Indian logistics market is anticipated to reach US$ 320 billion.
Government Strategies And Their Initiatives
The capital investment budget for infrastructure is being boosted by 33% to Rs.
10 lakh crore (US$ 122 billion), which is 3.3% of GDP and nearly three times the
budget for 2019-20.
A capital outlay of Rs. 2.40 lakh crore (US$ 29 billion) has been allocated for
the Railways in the Union Budget 2023-24, which is the greatest outlay ever and
nearly 9 times the amount made in 2013-14.
The creation of the Infrastructure Finance Secretariat will increase
opportunities for private investment in infrastructure and will benefit all
stakeholders by encouraging more private investment in power, roads, trains, and
other types of infrastructure.
To encourage infrastructure investment and to provide incentives for
complementary policy initiatives, the government has decided to extend the
50-year interest-free loan to state governments by one more year at a
significantly increased cost of Rs. 1.3 lakh crore (US$ 16 billion).
With an investment of Rs. 75,000 crores (US$ 9 billion), including Rs. 15,000
crores (US$ 1.8 billion) from private sources, 100 critical transport
infrastructure projects for last and first-mile connectivity for ports, coal,
steel, fertilizer, and food grains sectors have been identified and will be
taken up on a priority basis.
To increase regional air connectivity, 50 more airports, heliports, water
aerodromes, and advanced landing grounds will be revived.
Three centers of excellence for artificial intelligence will be established in
prestigious educational institutions to help realize the aim of "Make AI in
India and Make AI work for India."
With the aid of pertinent information services for crop planning and health,
improved access to farm inputs, credit, and insurance, assistance for crop
estimation, market intelligence, and support for the growth of the Agri-tech
industry and start-ups, the Digital Public Infrastructure for Agriculture will
be developed as an open source, open standard, and interoperable public good.
Alongside the 157 medical colleges that have already been operating since 2014,
157 new nursing colleges will also be founded.
Between April 2000 and September 2022, FDI in the sectors of construction
development (townships, housing, built-up infrastructure, and construction
development projects) and construction (infrastructure) activity was at US$
26.23 billion and US$ 28.95 billion, respectively.
In January 2023, the construction division of Larsen & Toubro received orders
for the establishment of a 112.5 MW solar power plant in West Bengal and the
construction of a 600-bed super specialty hospital in Mumbai, respectively, for
its power transmission & distribution and buildings & factories businesses.
As one of five companies that submitted a bid for the $7 billion (Rs. 58,000
crore) contract to build 200 Vande Bharat trains and maintain them for the next
35 years, BHEL formed a cooperation with Titagarh Wagons in December 2022.
Through different programs like the Telecom Technology Development Fund and the
Digital India program, the government has also made significant headway in
implementing improvements in digital infrastructure. Between 2015 and 2021,
there has been a 200% growth in rural internet subscriptions compared to a 158%
increase in urban areas. This shows that the connection between metropolitan
areas and rural areas is catching up. Between 2019 and 2021, rural areas added
95.76 million new internet subscribers compared to 92.81 million in metropolitan
India's economic growth is fueled by the cumulative development of its
infrastructure. Industrial growth is accelerated by rising demands for labor,
goods, and capital investments in infrastructure. According to research from the
Reserve Bank of India and the National Institute of Public Finance and Policy,
the GDP increases by 2.5 to 3.5 rupees for every rupee spent on infrastructure.
Trade gains from improved logistics and connectivity, and the general public
benefits from improved vital infrastructure and an overall rise in per capita
income. Thus, India can achieve its goal of being a developed country by 2047.
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