Under construction

Project delays must be avoided

The Central government is pushing infrastructure development in a big way. In the current year’s Budget, for instance, the allocation for capital expenditure has been increased by 37 per cent to Rs 10 trillion. Since India has struggled because of deficient infrastructure, which increased the cost of doing business and affected competitiveness, higher capital expenditure will be vital for growth. Besides, given that aggregate demand remains weak, which is not encouraging the private sector to invest, intuitively, it makes sense for the government to invest, which would help push up growth and create employment. Better infrastructure over time will also