Pakshal SecretryAIR 8 · CSE 2025 · 243 wordsTheir whole copy
Opening · a figure
Budget 2025-26, increased the capex budget to Rs 11.2 lakh crore highlighting India's focus on infrastructure led growth.
Importance of infrastructure
Body · points and prose
- Multiplier effect on growth (RBI - Capex impact multiplier = 1.32 vs Revenue multiplier = 0.72)
- Direct job creation → 11% people employed in logistic sector
- Improves ICOR and economic efficiency of capital
- Reduces logistic cost → from 13% of GDP to 7-8% of GDP (NIP plan) (5) Boost to exports → As the competitiveness increases (6) National Integration Eg Recent Road link (Chenab bridge) to J&K. (7) Virtuous cycle gets created
India's Success (1) Rise in investment in infrastructure sector Eg NIP - Rs 111 lakh crore (2) fourth largest rail network (59,000 km long) (3) third largest road network (4) Connectivity to hinterland Eg PM gram yojana (5) Improvement in position in logistic Index (WB) → Rank = 40 (6) Recent success → In 2025 turnaround time on ports = 0.9 days (<Singapore, China)
Failure (1) Quality of Infrastructure potholes on NH (2) Lack of focus on Social infrastructure (Amartya Sen) eg Health only 1.9% of GDP spent (3) Incomplete projects and very high NPAs in infrastructure sector (4) Multi Modal Paradox → While waterways is cheapest, it is least used (2.5% we) (5) Missing of Targets
Close
eg Budget 2024-25 → missed Rs 11.1 lakh crore Amartya Sen thus calls for investment in 4 capitals: material, natural, human and social capital to usher infrastructure led growth
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