With Economic Survey being tabled today, Mr. Raj Kumar, CMD, Rodic Consultants Pvt Ltd has penned down his views on the same. Would request you to go through it and take it forward!
“The Economic Survey for 2020-21 has rightly prescribed that a public investment programme centred around the National Infrastructure Pipeline is likely to accelerate the demand push in the economy and lead to sustained recovery in growth. The survey also clearly identifies the need for directing public expenditure for building infrastructure as its fiscal multipliers are large and such spending is likely to significantly crowd in private investment. With excessive risk aversion high in the private sector, risk taking via public investment can catalyse private investment and unleash a virtuous circle.
Thus, the Budget for FY22 should have adequate financial outlays for the speedy growth of the infrastructure sector due to its potential to generate more employment and entrepreneurial opportunities, thereby fostering inclusive growth. The outbreak of covid disrupted the timely execution of infrastructure projects affecting overall socio-economic development. The government announced several initiatives such as the Viability Gap Funding (VGF) and Production-Linked Incentive (PLI) scheme to give financial support to select infrastructure projects and attract global manufacturers to boost indigenous manufacturing. The effective implementation of these schemes, along with adequate public spending to boost pace of infrastructure development and timely completion, is now critical for success. Robust growth of infrastructure sector will strengthen the stride towards an Atmanirbhar Bharat. Further given its multiplier effect as noted by the Economic Survey, it will also give the much needed fillip to MSME sector.”