Government plans to invest US$1.4 trillion in infrastructure to spur the economy
India will unveil a series of infrastructure projects starting this month as a part of a plan to invest 100 trillion rupees (US$1.39 trillion) in the sector over the next five years, the finance minister said on Saturday, in a push to improve the country’s ailing economy.
Finance minister’s comments, as cited in local newspapers, followed the data released on Friday that showed India’s economic growth lowered to 4.5 per cent in the recent July-September quarter - its weakest pace since 2013 - upping the pressure on the government to speed reforms.
The current government came to power in 2014 on the promise to improve India’s economy and boost foreign investments but has struggled to meet those aims due to a lack of structural reforms. It won a second term in May this year and has taken various measures to spur growth, including cutting the corporate tax and speeding up privatisation of state-run firms. However, several economic indicators show that domestic consumption is weak. Hope this investment push helps stir the economy to the path of growth.