The goal of achieving high economic growth rate in the country relies heavily on infrastructure spending. Analyse (200 Words)
Refer - The Hindu
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· The National Statistical Office (NSO) released the second quarter gross value added (GVA) and gross domestic product (GDP) numbers on indicating the pace of economic recovery in India after the two COVID-19 waves.
· This emphasis on government investment expenditure, supplemented by recovery of private investment expenditure, resulted in gross fixed capital formation (GFCF) showing a positive growth of 1.5%.
Why Infrastructure spending?
· Increase in exports of various goods and services, thus increasing forex earning.
· Better logistics increases the mobility of labour and provide various employment opportunities.
· Better connectivity integrated markets across the country, provide timely supply of raw materials especially in iron and steel manufacturing sector.
· Infrastructure act as engine of economic growth, provides big investments from foreign countries, thus making economy technologically competitive.
· Help optimally utilize the demographic dividend, by providing employment opportunities.
Statistics
· The government is in a significantly stronger position in 2021-22 since the growth in GTR in the first half is 64.2% and the full year growth is expected to be quite robust.
· Thus, the key to attaining a 9.5% real GDP annual growth in 2021-22 lies in the government’s ongoing emphasis on infrastructure spending as reflected in government’s capital expenditure.
K. V. A 3 years
Kindly review
IAS Parliament 3 years
Try to mention about air transportation, raliways. Keep Writing.
