Tuesday, July 23, 2024
Reading Time: 2 minutesThe Indian Government has reaffirmed its commitment to infrastructure development by allocating Rs. 11.1 trillion for FY2025, equivalent to 3.4% of the country’s GDP.
This substantial capital outlay, consistent with the interim budget, underscores the government’s strategic focus on enhancing the nation’s infrastructure.
Ms. Kinjal Shah, Senior Vice President & Co-Group Head- Corporate Ratings, ICRA Ltd said in the Union Budget, “The capital outlay on infrastructure development at Rs. 11.1 trillion for FY2025 BE, equivalent to 3.4% of GDP, remains unchanged from the interim budget.
The GoI’s continued focus on infrastructure development, including new road projects in Bihar, plug and play industrial parks in 100 cities, and 12 new industrial parks in turn augurs well for commercial vehicle demand, especially multi-axle vehicles and tippers.
The focus on developing tourism locations, as well as improving road connectivity in rural areas, augurs well for the demand for public transportation, including buses.”
One of the significant highlights of this budget is the announcement of new road projects in Bihar.
These projects are expected to improve connectivity and accessibility in the region, facilitating smoother transportation of goods and people.
This development is anticipated to drive demand for commercial vehicles, particularly multi-axle vehicles and tippers, which are essential for large-scale construction and transportation activities.
In addition to road projects, the government plans to establish plug-and-play industrial parks in 100 cities.
These parks will provide ready-to-use infrastructure for industries, promoting ease of doing business and attracting investments.
The creation of 12 new industrial parks further complements this initiative, offering more opportunities for industrial growth and employment.
The government’s focus on developing tourism locations is another crucial aspect of the FY2025 budget.
Enhancing tourism infrastructure is expected to boost the hospitality and service sectors, contributing to economic growth.
Moreover, the emphasis on improving road connectivity in rural areas aims to bridge the urban-rural divide, making remote regions more accessible and fostering economic development in these areas.
These infrastructure projects have a positive outlook for the public transportation sector as well.
The development of new roads and improved connectivity will likely increase the demand for public transport services, including buses.
This initiative aligns with the government’s vision of providing efficient and reliable transportation options for all citizens, thereby improving the quality of life and reducing traffic congestion.
Overall, the Government of India’s continued investment in infrastructure development through the FY2025 budget is set to create a ripple effect across various sectors.
By focusing on key projects like road development, industrial parks, and rural connectivity, the government aims to stimulate economic growth, enhance transportation networks, and improve the overall infrastructure landscape of the country.