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Government Planning to include public investment for Infrastructure Development

The Union government is awaiting approval of SEBI for enabling common citizens to invest at least 1 lakh rupees in infrastructure development projects. This plan is in the line with the government’s commitment to achieving the-5 trillion economies by 2025. Using the potential of people’s money for building infrastructure could be one of the defining terms in the Indian economy. Apart from this Government is assuring of 7.5% to 8% annual return to the public investment. As for now this investment comes for NHAI but could be further extended to other sectors. This is termed as one of the few important steps taken to improve the financial condition of the people. Apart from this, it will fulfill the fund crunches of the government for infrastructure development.


Supply restraints in COVID times have made the country see for the other alternatives to tackle this issue. So attaining self-sufficiency in the manufacturing and agriculture sector was one of the solutions. For that Government has taken several steps in the field of agriculture focusing more on increasing the income of farmers. The use of Ethanol as a fuel in encouraging ethanol production is one among them. India’s Ethanol production is currently 400 crore liters. This is likely to go up to cater to the basic requirement of the 4000 crore liters. Besides this for Manufacturing Sector Government introduced PLI(Production Linked Incentives). Due to this several sectors including the Electronic sector got a major kink thus resulting in luring major investment in this sector.


India is the 4th largest economy in World and is aspiring to bag top a position in upcoming years. And for that infrastructure development needs to be hiked. Infrastructure development alone can increase the GDP growth of a country by 1-2% annually. It is well needed to attract foreign investments to cope with the slowdown of the economy. COVID Crisis has revealed several shortcomings of the country. Especially in terms of unregistered migrants and lack of proper Health Care infrastructure.

So bringing this plan to cope with the lack of funds in infrastructure is the result of the far-sightedness of government. This plan comes along with several benefits which have a direct impact on the economy. Such as-

  • Rising of Real-State sector
  • Increase in Employment
  • Attraction of Foreign Investment
  • Improving of Living Standards of People
  • Reduce in Malnutrition Cases and other Health related cases.

Keeping these things apart comes with other indirect benefits which play a major role in the development of the economy. Such as the Coming of even more flexible labor laws, the inclusion of Social Security inclusion for the marginalized community, etc.

So Government plan of achieving 5 a trillion economy could work well if this plan gets its proper direction.  

Also read:  FCRA Renewed Congress Linked NGO

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