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FEBRUARY 22, 2023

Infrastructure impact on life of the common man

It is commonly acknowledged that infrastructure is a crucial component of any nation's economic success. India began its 12th Plan era last year, and it is anticipated that infrastructure investment of Rs 50 trillion over the next five years will double from that of the 11th Plan.

According to an RBI assessment, existing investments are at danger due to protracted gestations and input supply constraints that are harming the viability of ongoing projects, while fresh investments have significantly slowed down. Large companies' overall fixed investments in new projects decreased by 46% this year. Metals and infrastructure took the lead in the decline.

According to the RBI research, lending and activity in the important infrastructure sectors are declining, which would cause a slowdown in the real estate market. This needs to be addressed immediately in the future budget. Roads and railways are two important sectors of infrastructure spending that directly affect our daily life. Future construction initiatives like the Metro Rail and MonoRail will give Mumbai good east-west connectivity. However, continuous planned execution and a quick conclusion of the aforementioned megaprojects are urgently required since they will guarantee seamless communication across the city. Additionally, there is a need to streamline long-term, low-cost funding for major infrastructure and work should only begin after all clearances have been secured.

“Increased budget for infrastructure will help both the general public and the economy.”

Budget increases for infrastructure will help both the general public and the economy. He now has access to better amenities, which directly impacts how much simpler his daily life is. The indirect (and compounding) effect is that it provides the economy with a much-needed boost in terms of consumption, employment, and GDP growth.