You are here: Home » News-IANS » Business-Economy
Business Standard

India needs Rs 50-tln investments in infrastructure: CII

Business Finance

IANS  |  Bengaluru 

The infrastructure sector in India would require about Rs 50 trillion ($778 billion) by 2022 as a key growth driver for sustainable development across the country, said an industry official on Tuesday.

"The infrastructure sector, comprising core sectors like power, roads, highways and renewable energy, will require Rs 50-trillion investments over the next 4 years to have sustainable development in the country," said Confederation of Indian Industry (CII)'s Karnataka unit Chairman N. Muthukumar at a day-long conference here.

Participating in the CII annual conference on infrastructure themed "Impact of Technology on Infrastructure Development & Changing Workplace", Muthukumar said while core sectors would drive the investments in the years to come, with proper infrastructure, land use by industries could be reduced by 40 per cent.

"Infrastructure development influences the overall development of the economy. The private sector is emerging as a key player across various segments, from roads and communications to power and airports," said Muthukumar, who is also President of Automotive Axles Ltd.

Noting that the infra sector is critical to propel growth, Volvo India Managing Director Kamal Bali said as good infrastructure and logistics are pre-requisites for a healthy economy, India has a long way to go.

"The cost of logistics in India is 14 per cent of the GDP as opposed to 8 per cent in the rest of the world, resulting in a wastage of $150 billion a year. With 62 per cent of logistic movement in the country by road, stress on surface infrastructure is huge, resulting in 75,000km per year per truck as against 450,000 km in China," Bali said.

Though urabanisation is a sign of a developing economy, Sri City President Satish Kamat said, providing right infrastructure is critical, as mistakes in the sector could not be corrected easily.

"Infrastructure affects a nation's social and economic fabric and when intertwined with technology, it becomes a force multiplier," asserted Kamat.

He advocated the use of Internet of Things, Artificial Intelligence, machine learning and deep learning in infra development to ensure longevity and effectiveness.

Highlighting the issues facing the infra sector, Kamat said lack of long-term finance, skill upgradation and technology solutions are holding up its growth pace.

"We need the right infrastructure, developed at the right speed and using the right technology to ensure the country is future ready," asserted Kamat.

CII's state infrastructure taskforce convener Syed Mohammed Beary lamented that a city like Bengaluru lacks the right infrastructure though it is suited to be one of the world's best.

"In India, we build infrastructure after a city grows, while good infrastructure builds great countries and futuristic cities," Beary pointed out.

Karnataka Industry Minister K.J. George, who was to inaugurate the conference, and state Urban Development Secretary Mahendra Jain, who was to deliver the special address, were conspicuous by their absence.

"There was no official representation from the state government at the conference," a CII office told IANS here.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, September 11 2018. 22:30 IST