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Prime Minister Narendra Modi criticised previous governments for tardy infrastructure development because of their mindset of ‘poverty as a virtue’

India has to accelerate implementing infrastructure projects in the “top gear” in order to make it a developed nation by 2047, Prime Minister Narendra Modi said on Saturday.

The Budget 2023-24 cites ‘infrastructure and investment’ as one of the seven top priorities guiding the country through the Amrit Kaal -- the 25 years in the run-up to country’s 100th year of Independence.

Addressing a post-budget webinar on ‘Infrastructure and Investment: Improving Logistic Efficiency with PM Gatishakti National Master Plan, PM Modi said infrastructure development is the driving force of the country’s economy, which is the path for achieving the target of becoming a developed nation by 2047. “Now we have to improve our speed and move in top gear,” he added.

This was the eighth of the 12 post-budget webinars being held between February 23 and March 11, an annual practice since 2021 to emphasise importance of key budget proposals and devise ways for their implementation in a coordinated manner. The purpose of the webinars is to involve stakeholders and generate ideas for effectively implementing the initiatives announced in the Union Budget. Besides officials of central and state governments, the webinar was attended by over 700 senior executives of companies.

Underscoring the importance of far-sightedness in conceptualisation of infrastructure planning, the Prime Minster cited the example of the redevelopment of Kutch in Gujarat after the devastating earthquake during his chief ministership of the state. He said there could be two ways for restoration – the easiest and the cheapest way was to opt for the quick-fix solutions; and a comprehensive, big and futuristic redevelopment, converting disaster into an opportunity. He said as the CM of Gujarat, he preferred the second option by creating bigger and better infrastructure, making the region into a vibrant hub of economic activities.

The Prime Minister criticised previous governments for tardy infrastructure development because of their mindset of “poverty as a virtue” and said the present government has not only been successful in eliminating this mentality but also in making record investments in modern infrastructure. The average construction of National Highways has nearly doubled compared to what it was before 2014, he said. Similarly, only 600 km of railway track was electrified per year before 2014, which is now reaching 4,000 km per year, he added.

The robustness of India’s physical infrastructure is equally important for the strengthening of the country’s social infrastructure, he said citing emphasis of his government on setting up wellness centres and housing for the poor. A strong social infrastructure will lead to more talented and skilled youth who will come forward to serve the nation, he added.

He said the government’s infrastructural development is not just limited to rail, road, ports, and airports. Citing the example of the Budget proposal to create warehousing facilities in villages, he said it will help farmers to store farm produces locally.

Presenting Budget in Parliament on February 1, finance minister Nirmala Sitharaman said: “…we will implement a plan to set up massive decentralised storage capacity. This will help farmers store their produce and realise remunerative prices through sale at appropriate times.”

Infrastructure is one of the key priorities of the Union Budget 2023-24 because it has a large multiplier impact on growth and employment. The Modi government has been raising the capital investment outlays steeply in every budget especially after the Covid-19 pandemic in March 2020. In 2023-24, the outlay has been raised by 33% to ?10 lakh crore, which is about 3.3% of the gross domestic product (GDP). “This will be almost three times the outlay in 2019-20. This substantial increase in recent years is central to the government’s efforts to enhance growth potential and job creation, crowd in private investments, and provide a cushion against global headwinds,” Sitharaman said in her Budget speech. In fact, including grants to states, effective capital expenditure of the Centre is budgeted at ?13.7 lakh crore in 2023-24, which is about 4.5% of the GDP.

PM Modi said India’s capex has been raised five times compared to 2013-14 and the government is moving with a target of investing ?110 lakh crore under the National Infrastructure Pipeline (NIP). “This is a time of new responsibilities, new possibilities and bold decisions for every stakeholder,” he said.

The Prime Minister emphasised on the need to have an integrated approach to infrastructure development, citing the PM Gati Shakti Master Plan as an effective tool for that. “We have identified the gaps that were impacting the logistics efficiency. That is why, in this year’s Budget, 100 critical projects have been prioritised and ?75,000 crore have been allocated,” he said inviting the participation of the private sector in the sector.