DECODED: With PM Narendra Modi 5Is formula, economic growth will happen through infrastructure development

Businesses are easing their plans to resume operations, with an optimistic attitude and a willingness to face the unpredictable days ahead. The government initiatives with fiscal measures and special economic package for SMEs and agriculture have been morale boosters in these difficult times. Of all the measures taken by the government, infrastructure spending is the most important initiative to achieve long-term objectives for manufacturing, agriculture, logistics and foreign trade.

Pradeep Misra, Chairman & Managing Director of REPL (Rudrabhishek Enterprises Ltd), says, "In order to fuel economic recovery and development, infrastructure spending must take on a key role. Hon’ble PM of India has already included Infrastructure as a crucial part of his ‘5i (Intent, Inclusion, Investment, Infrastructure and Innovation) agenda for economic revival’. All major sectors depend on strong infrastructure; ranging from transport, logistics, farming, manufacturing, telecom, finance, healthcare and education."

"It is important that common people have cash in their hands to spend. That will push the wheels of spending and production cycle. This will happen with job creation at various levels. Infrastructure investment naturally leads to employment generation at large scale in the lesser time span. For the faster recovery of the economy, it becomes crucial to push the large-scale infrastructure projects and allow free spendable cash in hands of people in general," Pradeep Misra added.

Further, Misra says, "Although all the aspects of infrastructure are vital for the economy, few are more important than others and require attention on a priority basis. These sectors act as the lifeline of the entire sector and so of the entire economy. Sectors like logistics, transportation, IT, Communications and Healthcare not only help in the flow of information and material within the country but also help other sectors to function smoothly and greatly reduce unnecessary costs."

"Logistics and transport are interconnected and intertwined sectors critical for the economy. Efficient logistic and transport not only save time and costs, they also help avoid damages to material and goods. The roads, railways, airways and waterways are critical for the success and efficiency of any industry sector. As per the statement by Union Minister, Shri Nitin Gadkari, the ministry of road transport and highways is working on projects worth INR 15 Lakh Crore road & highway, train and waterway development across the country for two years. Such investments are not only boosting industry and business, it also to foster growth and development across the country. Urban and rural connectivity will improve and speed up the flow of people and goods while stimulating the real estate development, which will fall in line with SME / MSME, and other lifestyles businesses," Pradeep Misra added.

"IT and Communication are the other two sectors equally important for any modern economy. India through its digital India initiative is pushing for digitally strong networks. India has undergone unprecedented internet penetration in the last decade. As a nation with a growing number of internet users and one of the most significant population with smartphones, there is an ever-growing demand for stronger IT infrastructure. Strong IT infrastructure to revolutionize communications, e-commerce and the industry, as well as collaboration and development opportunities, is imperative not only in urban but also in rural area. It will help to create a favourable environment for the expansion and adoption of new-age technologies such as IoT, AI and ML. Even the efficiency of sectors like healthcare is strongly dependent on the IT sector," says Misra.

"COVID-19 once again highlighted the need for robust healthcare infrastructure. There is a growing need to make the healthcare system and infrastructure available and effective in urban as well as the rural level. The growth of health infrastructure would allow the economy not only to access a greater number of active and safe individuals but also to provide strong protection against preventable diseases. In other words, it will help reduce the burden of medical costs to the economy. The post-Covid-19 markets are expected to be uncertain and turbulent times ahead are feared. Investment in the infrastructure sector is perhaps the most significant step to navigate through the tough times and ensure the revival of the economy. Restarting after the 3 months lockdown hasn’t been easy for most of the organizations, however with growing investments in the infrastructure sector by the government will give the confidence to players," Pradeep Misra concludes.