ACCOUNTING
| Investment in infra has boosted GDP growth: Govt Wed, 23 Feb 2011 08:41:12 GMT |
| NEW DELHI: The government today said that increased investment in the infrastructure sector has spurred the GDP growth rate of the country and various committees have been set up to further boost spending on these activities. In a written reply to the Lok Sabha, Minister of State for Planning and Parliamentary Affairs Ashwini Kumar said that investment in major infrastructure sectors is projected to grow by over two-fold during the ongoing Eleventh Five-Year Plan (2007-12) in comparison to the Tenth Plan (2002-07). "Increased investment in infrastructure has resulted in a higher growth of GDP of 8 per cent in 2009-10 at constant (2004-05) prices," he said. Kumar added that during the Eleventh Plan, investment in ten major physical infrastructure sectors -- including electricity, roads and bridges, telecommunications, railways, irrigation, water supply and sanitation and airports -- is projected at Rs 20,54,205 crore, which is 2.23 times the expenditure of Rs 9,19,225 crore incurred in the previous Plan. "During the first three years of the Eleventh Plan (2007 -08 to 2009-10), the anticipated investment in infrastructure is Rs 10,65,828 crore against the target of Rs 9,81,118 crore," the minister added. Incidentally, the government has said the country will require an investment of USD 1 trillion in the infrastructure sector to maintain the growth momentum in the upcoming 12th Plan (2012-17). Kumar further said the government has created a number of bodies, including the Cabinet Committee on Infrastructure (CCI), to promote investment in the sector. Other bodies formed for the purpose are the Public Private Partnership Appraisal Committee (PPPAC) and India Infrastructure Finance Company Ltd (IIFCL). |
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