An infrastructure boost coming up? PM Modi to chair crucial meeting today

Prime Minister Modi will be reportedly chairing a crucial meeting of the Council of Ministers today, where a Group of Secretaries on Infrastructure will present their strategic plans for the next five years and outline a vision for 2047.

India's infrastructure expansion continues to play a pivotal role in boosting the economy. According to Moody’s Ratings, the ongoing development is expected to enhance the business environment, attract private sector investments, and create jobs in higher-paying sectors. The significant capital outlay in the recent budget—Rs 11.1 lakh crore—underscores the government's commitment to infrastructure, with positive ripple effects anticipated across sectors like construction, steel, and cement.

This infrastructure push is also set to benefit related industries, such as automotive manufacturing, airlines, and ride-hailing services, due to increased transportation needs. Moreover, the growth of digital and physical infrastructure is driving efficiency in the FMCG sector by improving logistics and connectivity.

However, challenges persist in addressing non-agricultural employment. Moody’s notes that low participation in higher education and gender gaps in educational attainment could hinder the full realization of employment opportunities from the infrastructure boom.

India's infrastructure progress has been reflected in its improved ranking in the World Bank's Logistics Performance Index, rising to 38th from 54th a decade ago. The country now has the world's second-largest road network and has become the third-largest domestic aviation market, driven by a growing middle class and policies like the UDAN scheme.

Digital infrastructure has also seen significant advancements, with initiatives like Digital India expanding internet access to rural areas and digitalizing government services. The Unified Payment Interface, a key element of this digital push, processed Rs 200 trillion in transactions in fiscal 2023-24, showcasing India's growing digital engagement.