Let us look at some delightful news from the 2024 Union Budget. In a move to strengthen the infrastructure, Finance Minister Nirmala Sitharaman has announced an interest-free loan of ₹1.5 lakh crore for infrastructure development in states. This comes at the back of a five-year strong fiscal support by the government. The initiative is envisioned to open up a clutch of projects which will spearhead development, from road connectivity to industrial development.
PC: The Economic Times
Speaking of roads, the budget has earmarked ₹26,000 crores exclusively for road connectivity projects. This means smoother, faster travel and, quite probably, fewer potholes to dodge every day while commuting to work. But that is not all. An industrial node is to be developed at Gaya along the Amritsar-Kolkata Industrial Corridor. That could be the game-changer for this area, drawing businesses and revving up the local economy.
This hugely ambitious plan has a capital expenditure of ₹11,11,111 crore, which is about 3.4 percent of GDP, an indication that the government has been serious about infrastructure and ready to put its money where its mouth is.
But there’s more in the offing. The budget also moots the fourth phase of PM Gram Sadak Yojana, proposing work in 25 rural areas. Under it, rural road connectivity would get a boost, as villagers could reach markets, schools, and healthcare facilities with much ease. This indeed is an initiative taken toward bridging the urban-rural divide so that development reaches all corners of this country.
Not to speak of Assam, to which help will be given in flood management and allied works. Given the frequent issues of flooding in Assam, this support may turn out to be vital for lessening the impact of the floods on lives and property.
What is most interesting is the government’s intention to help private sector investment in infrastructure with viability gap funding. It essentially would mean that on projects where the private sector comes forward to invest, the government would chip in with funds to make up for any shortfall in financing. The idea is smart in that it ensures private sector efficiency and expertise but also that the critical projects do get the necessary financial backing.
The bottom line of the 2024 Union Budget is that it presented a bold step towards reshaping the infrastructure profile of India. With a mix of government funding and private sector involvement, the future indeed looks promising. Much more lies ahead in the future to come, be it smooth roads, fully developed industrial areas, or rural connectivity.
