Infrastructure: Call for more robust PPP framework

Economic Survey of India: The Economic Survey pitched for higher spending on infrastructure creation as it will lead to more rapid and inclusive growth of the economy battered by the pandemic.

To bring private sector investment in the infrastructure sector, the Survey stressed the need to strengthen public-private partnerships (PPPs) as private investment in the sector has come mainly via PPPs. “PPPs help in addressing the infrastructure gap as well as improve efficiency in infrastructure service delivery,” the Survey said.

“The year after the crisis (FY22) will require sustained and calibrated measures to facilitate the process of economic recovery and to enable the economy to get back to its long-term growth trajectory. The revival of the industrial and infrastructure sector will be key to overall economic growth and macroeconomic stability,” it said.

In the absence of adequate infrastructure, the economy operates at a suboptimal level and remains distant from its potential and frontier growth trajectory, it said. “Therefore, investment in infrastructure is quintessential for more rapid and inclusive economic growth,” the Survey added.

Lauding the National Infrastructure Pipeline (NIP) project that proposed to spend `111 lakh crore between FY20 and FY25 on infrastructure creation across sectors, the Survey said such initiatives will boost the economy, generate better employment opportunities and drive competitiveness. The NIP is proposed to be jointly funded by the Centre, states and the private sector.