Home Economy $1 trillion required for infrastructure development

$1 trillion required for infrastructure development


New Delhi : An investment of over $1 trillion is required in the infrastructure sector during the 12th Five Year Plan (2012-2017), Planning Commission Deputy Chairman Montek Singh Ahluwalia said Tuesday.

“A preliminary assessment suggests that investment in infrastructure during the 12th plan would need to be of the order of about Rs.40.99 lakh crore ($1,025 billion) to achieve a share of 9.95 percent as a proportion of GDP,” he said in a report on the sector.

The investment requirements of the 12th Plan are twice more than amount investment during the current plan. About $500 billion will be invested by the end of the 11th Five Year Plan with the telecom sector attracting more than expected investments.

Lack of infrastructure is among the main challenges faced by the growing Indian economy today.

The government showed resolve in bridging the gap as it allocated 46 percent share of the total budget allocation for the next fiscal towards new and ongoing infrastructure development projects.