Analysts are cautiously optimistic on the Centre’s big bang infrastructure push to achieve its $5-trillion economy target.
Finance Minister Nirmala Sitharaman on Tuesday released a report on the National Infrastructure Pipeline (NIP) that provides year-wise commissioning of infrastructure projects worth ₹1.02-lakh crore over the next five years. Projects are spread across power, renewables, roads, railways, and urban development including metros, education, irrigation, health, water, mobility and digital development.
The Centre’s move implies continued focus on infrastructure spending over the next five years with increasing budgetary support as a percentage of GDP every year till FY2025. “While the plan talks about funding requirements, its success depends on the availability of funds, which may turn out to be the key limiting factor of such an ambitious plan,” said Motilal Oswal Securities in a report.
