Physical infrastructure push boosted every sector of Indian economy: Ashwini Vaishnaw at Davos
Jan 18, 2024
Davos [Switzerland], January 18 : Union Minister Ashwini Vaishnaw on Thursday asserted that every major industry in India was boosted because of the massive physical infrastructure push that the current government in New Delhi is focused on.
"If you look at the investments made in infrastructure, from a base of about $30 billion, in this fiscal year, India is investing USD 120 billion in infrastructure, that has multiple impacts, the impact on productivity is very good, the impact on overall economic activity is a multiplier of 3.6, so you invest USD 100, the economic activities are actually of USD 360," Minister Vaishnaw said.
Speaking at a session themed 'Can India Seize its Moment?' during the ongoing World Economic Forum in Davos, Switzerland, in which ministers Hardeep Puri and Smriti Irani also participated, Union Information Technology Minister Ashwini Vaishnaw said that the last decade has seen a significant structural shift in India's economy.
The growth was underpinned by four basic pillars -- to improve productivity and efficiency in the economy, inclusive growth, focus on manufacturing, simplification and removal of archaic laws, he said.
"He (PM Modi) has always kept the people at the bottom of the pyramid as the focus of his growth story," Minister Vaishnaw said, referring to the large-scale opening of bank accounts which brought millions under the formal financial system, housing for all, tap water and gas connections.
"More than 1,500 archaic laws on the statute book have been repealed, many of the colonial era laws and procedures have been removed, and more than 30,000 compliances have been removed. It's a government which listens with an open mind," he added.
Further, Vaishnaw said the current government under Prime Minister Narendra Modi has always kept the people at the bottom of the pyramid as the focus of his growth story.
"I'll give it a few numbers, in the last decade 510 million bank accounts have been opened, that is the number of people who have who have been brought into the formal financial system. If you look at the number of houses constructed, 40 million houses were constructed for the rural and urban poor. That's like completely changing the landscape of size of a continent. Look at the number of tap water connections, gas connections, 110 million gas connections given. So, change the entire cooking habits from wood base to gas base. Multiple number of factors which are basically bringing a transformational change in the people at the bottom of the pyramid," he explained.
