The government has launched the National Infrastructure Pipeline (NIP), according to which it plans to invest Rs 111 lakh crores in infrastructure projects by 2024-25 in order to maintain Prime Minister Narendra Modi’s vision of making India one for the next five years Making $ 5 Trillion Economy Transport and Highway Minister Nitin Gadkari said Tuesday.
Gadkari spoke at a special session on the 2020 CII Partnership Summit organized by the Association of Indian Industries (CII) in collaboration with the Ministry of Industry and Domestic Trade Promotion (DPIIT).
Gadkari stated that the center is continuously working on improving the infrastructure, saying, “The National Infrastructure Pipeline (NIP) is a first of its kind to provide world-class infrastructure across the country and improve the quality of life for all citizens.”
Gadkari announced that the government intends to invest Rs 25 lakh crore in the road sector. He added that two major highway projects – Amritsar-Ajmer and Delhi-Amritsar-Katra – worth 65,000 rupees were planned.
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Gadkari also stated that while the pandemic had adversely affected the MSME sector, the government had taken the right policy measures, including changing the MSME definition, loan guarantee system, loan-linked capital grant program and MSME cluster development program to target the sector form independently.
“With the global realignment, MSMEs would play a major role in redefining their contribution to the Indian economy. The government plans to increase the contribution of MSMEs from the current 30 percent to 40 percent of GDP, ”added the minister.
Gadkari underlined the importance of aligning with Global Value Chains (GVCs), adding that 80 percent of global trade goes through the GVCs and that most of the companies involved in GVCs are medium-sized. The government has taken several steps in this direction, including adopting technologies such as artificial intelligence and machine learning to strengthen the sector and increase global exports.
Gadkari also noted that reforms like lowering corporate tax rates, 100 percent tax exemption for investors and the introduction of GST have positioned India as a competitive market in the world, particularly in terms of making tax payments easier.
The minister added that the government was committed to creating a favorable environment and transparent policy framework for investors and that he was confident that India would become a major global investment destination.