The government launched the National Infrastructure Pipeline (NIP) under which it plans to invest Rs 111 lakh crores in infrastructure projects by 2024-25, while maintaining Prime Minister Narendra Modi’s vision of making India a $ US economy. 5 trillion over the next five years, Union Road Transport and Highways Minister Nitin Gadkari said Tuesday.
Gadkari spoke at a special session on the CII Partnership Summit 2020, organized by the Confederation of Indian Industry (CII) in collaboration with the Department of Promotion of Industry and Internal Trade (DPIIT).
Stating that the Center works continuously to upgrade infrastructure, Gadkari said, “The National Infrastructure Pipeline (NIP) is the first exercise 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 25 million lakh rupees in the road sector. It also added two major highway projects – Amritsar-Ajmer and Delhi-Amritsar-Katra – worth Rs 65,000 crore.
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Gadkari also said that while the pandemic has negatively impacted the MSME industry, the government has taken the right policy interventions, including changing the definition of MSME, the credit guarantee scheme, the credit-related capital subsidy scheme and the MSME cluster development program to make the sector self-sufficient.
“With the global realignment underway, MSMEs would play an important role in redefining their contribution to the Indian economy. The government plans to expand the contribution of MSMEs from the current 30% to 40% of GDP, “added the minister.
Emphasizing the importance of alignment with global value chains (GVCs), Gadkari added that since 80% of global trade occurs through GVCs and most of the firms involved in GVCs are medium-sized enterprises, the government has undertaken several steps in this direction, including the adoption of technologies such as Artificial Intelligence and machine learning to strengthen the sector and also increase global exports.
Gadkari also noted that reforms such as lowering corporate tax rates, 100% tax exemption for investors and the implementation of GST have positioned India as a competitive market in the world, particularly in terms of ease of payment of taxes.
The minister added that the government is committed to providing a supportive environment and transparent political framework for investors and that he is confident that India will become a leading global investment destination.