India's Infrastructure Development: Govt Initiatives & Growth

New Delhi, Jan 5 (PTI) The government has taken a slew of initiatives for infrastructure development as it has a strong multiplier effect and plays pivotal role in the country's development, Financial Services Additional Secretary M P Tangirala said on Friday.

Speaking at the 19th Foundation Day of the India Infrastructure Finance Company Ltd (IIFCL), he said infrastructure sector has strong backward and forward linkages.

To support the sector, he said the government has taken slew of initiatives, including the USD 1.3 trillion-PM Gati Shakti National Master Plan (NMP) that has been front runner in bringing about systemic and effective reforms in this sector.

Launched in 2021, the PM Gati Shakti targets to cut logistic costs, increase cargo handling capacity and reduce the turnaround time.

Another initiative is the National Infrastructure Pipeline (NIP) that was started with 6,800 projects and now, there are over 9,000 projects across 34 sub-sectors, he said.

NIP was launched with 6,835 projects and has expanded to capture over 9,288 projects with a total outlay of Rs 108.88 lakh crore between 2020-25. It comprises brownfield and greenfield infrastructure projects of more than Rs 100 crore.

Amid global turmoil, India stands out as an engine of growth on the back of macroeconomic fundamentals and ongoing structural reforms, Tangirala said.

As per various estimates, he said India is set to become world's third largest economy by 2030.

Currently, India's is the fifth largest economy in the world after the US, China, Japan and Germany.

India's financial system remains stable and resilient, marked by sustained growth in bank credit, low non-performing assets and ample capital, he said.

The incorporation of technology and an increase in digitisation enhance reach and depth of financial intermediation creating new avenues for growth and financial inclusion, he added.