India plans to spend US$ 1.4 trillion on its infrastructure in next 5 years, to become a US$ 5 trillion economy by 2024, according to Union Minister for Finance, Ms Nirmala Sitharaman.
During the annual meeting of the International Monetary Fund (IMF), Sitharaman said, for the next 5 years, the task force which has been constituted in finance ministry will draw up a national pipeline. She also said “As we envisage becoming a five trillion-dollar economy by 2024-25, our focus on creating world-class infrastructure has become even more resolute. If we spent US$1.1 trillion on infrastructure in the last 10 years (2008-17), we now are going to invest about US$1.4 trillion in the next five years” along with the statement that the India has took a step forward to enhance the infrastructure investment by launching innovative financial vehicles like Infrastructure Debt Funds (IDFs), Real Estate Investment Trust (REITs), Infrastructure Investment Trusts (InvITs) also reposing the framework for municipal bonds.
Sitharaman included the statement, “We are already applying Public Private Partnership (PPP) models in the country. We have adopted the Asset Recycling model to modernize existing infrastructure, like highways, while providing government with upfront capital to support new infrastructure” and for infrastructure investment, India is trying to develop the brownfield assets as a separate asset class.
Another initiative which was set up by government of India is National Investment and Infrastructure Fund (NIIF) with the aim of achieving channeling investment from the both domestic and international sources into infrastructure.
Sitharaman said “To provide relief by way of income support to the farmers, the government has announced the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) this year…nearly 145 million beneficiaries in total will stand covered under this scheme”. She also stated that to promote the use of organic seeds and natural fertilizers by farmers, India is adopting the Zero Budget Natural Farming model.
She also claimed that, “This will reduce their expenditure and remove their dependence on credit. Such a step would contribute to our goal of doubling farmers’ income by 2022”.