J.Like last year, Nirmala Sitharaman’s 5th budget includes a lot of infrastructure spending. Presenting the final full budget before the decisive elections in 2024, the Finance Minister has followed Prime Minister Narendra Modi’s tried-and-true formula to increase spending on the country’s key infrastructure sectors, including roads, railways and airports. has been protected.
The benefits are fairly simple, especially now that the global economy is facing a sharp recession. Increased government spending means job creation as well as stimulating private and investment spending.
First, Sitharaman has allocated Rs 2.4 crore for capital investment in Indian Railways this year. That’s nine times his amount for the 2013-14 fiscal year. Most of the funds will be spent on the construction of tracks, new coaches, electrification and development of station facilities.
The railway is undergoing a transformation and the government is looking to replace some of the existing trains with Vande Bharat trains. Last year, the government announced plans to deploy 400 Vande Bharat trains by 2025. Additionally, more than 1,000 of his carriages on Rajdhani, Shatabdi, Duronto, Humsafar, Tejas and other trains will be renovated. Railroads are likely to use the funds for track expansion and electrification, in addition to new coaches and trains.
“The government continues to push for infrastructure as it increased capital expenditure by 33% to Rs 1 billion,” said Sanjay Kumar, partner at Deloitte India. “The key aspects will be a record increase in capital expenditures on railroads and logistics that will impact the overall cost of doing business and potentially address the larger issue of rising trade costs within the country. It is an additional focus to the specific numbers, but the focus on urban planning reform welcomes the more nuanced drivers for better development across the city.
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The government has now identified 100 critical transport infrastructure projects for last-mile and first-mile connectivity in the ports, coal, steel, fertilizer and food grain sectors and plans to increase investment. “They will be prioritized with investments of Rs 75,000, including Rs 15,000 from private sources,” Sitharaman said in his speech.
The Government has also decided to increase the allocation to the Ministry of Roads by approximately 36% to Rs 2.7 crore for 2023-2024. The country, which currently has over 1.4 million kilometers of highways, planned to build 25,000 kilometers last year. This year’s allocation, from 2022 he has exceeded his budget allocation of Rs 1.99 lakh made in 2023 by almost 10%. Last year, India built just over 10,000 km of her, according to an economic survey. Of the total expenditure of Rs 2.7 crore, the Indian Highway Authority has granted her Rs 1.62 crore, which is a 21% increase from 2022 to 2023.
Additionally, the focus is on the restoration of 50 additional airports, heliports, seaplane airfields and pre-landing facilities to improve air connectivity in the region. The 31 January economic survey found that the civil aviation sector had “great potential due to rising demand from the middle class, growing population and tourism, rising disposable incomes, favorable demographics and widespread aviation infrastructure.” It’s hidden,” he said. The Finance Minister also said to the Ministry of Civil Aviation this year that he has allocated Rs 3,113.36 crore, much of it to Tier-2 and Tier-2 and Tier-3 cities.
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December domestic air passenger traffic was 12.9 million, the highest since January 2020. Today, India’s domestic aviation market is led by low-cost airlines that control 80% of the market, led by market leader his IndiGo. This accounts for almost 60%.
“The initiative to provide additional infrastructure support at India’s 50 new airports, heliports, water airfields and advanced landing strips, along with simplified registration and overall regulation under GIFT IFSC is a great opportunity for the aviation industry. EaseMyTrip CEO and co-founder Nishant Pitti said:
The Government will also encourage the newly established Infrastructure Finance Office to encourage all stakeholders to invest more privately in infrastructure such as railways, roads, urban infrastructure and electricity, which are largely dependent on public resources. We believe that this is the key to supporting stakeholders.
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