Since the COVID-19 pandemic has deepened the troubles of the infrastructure sector, it is further expected that increased spending on the infrastructure sector will rejuvenate the aggregate demand.
The Union Budget of the year 2021 should have sufficient allocation for the growth of the country's infrastructure sector because this also impacts employment.
Union Budget 2021: As Finance Minister Nirmala Sitharaman is all set to present the Union Budget for the financial year 2021-22 in the parliament’s Lok Sabha tomorrow, there are huge expectations from the Modi government for the infrastructure sector. With the outbreak of the COVID-19 pandemic, various infra sectors of the economy saw huge loss last year, including Indian Railways, aviation, road transport and highways. According to Yogesh Mudras, Managing Director, Informa Markets in India, the Union Budget of the year 2021 should have sufficient allocation for the growth of the country’s infrastructure sector because this also impacts employment.
The MD of Informa Markets in India said that since development in the infrastructure sector additionally supports different enterprises, it promotes comprehensive development as well as helps in ease of doing business. Since the COVID-19 pandemic has deepened the troubles of the infrastructure sector, it is further expected that increased spending on the infrastructure sector will rejuvenate the aggregate demand. Besides, it will be the key ingredient to realize the vision of the Modi government’s Atmanirbhar Bharat initiative, which will further ensure that the nation’s economy stays on the recovery path, he added.
In order to augment India’s infrastructure as well as to create job opportunities for the public, the Modi government had launched Rs 103 lakh crore infra projects other than providing an amount of about Rs 1.70 lakh crore for transport infrastructure as well as accelerating construction of highways, Finance Minister Nirmala Sitharaman said during the last year’s Union Budget. The Finance Minister, while presenting the Union Budget for the year 2020-21 in the parliament, had said that the focus of the government is on infrastructure for economic development and as many as 6,500 infra projects across sectors under the NIP (National Infrastructure Pipeline) envisions ease of living for Indian citizens.