The government has launched the National Infrastructure Pipeline (NIP) under which it plans to invest Rs 111 crore in infrastructure projects by 2024-25, maintaining Prime Minister Narendra Modi’s vision of saving India $ 5 trillion. Over the next five years, the Union’s road transport and highway minister Nitin Gadkari said on Tuesday.
Gadkari spoke at a special session at the IIC 2020 Partnership Summit, organized by the Confederation of Indian Industry (IIC) in collaboration with the Department for the Promotion of Industry and Internal Trade (DPIIT).
Stating that the Center is constantly working to modernize infrastructure, Gadkari said: “The National Infrastructure Channel (NIP) is an exercise of this kind to provide world-class infrastructure across the country and improve the quality of life for all citizens.”
Gadkari announced that the government aims to invest 25 million pounds in the road sector. He added two major highway projects – Amritsar-Ajmer and Delhi-Amritsar-Katra – worth Rs 65,000 crore.
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Gadkari also stated that although the pandemic has negatively affected the MSME sector, the Government has taken the right policy interventions, including changing the definition of MSME, the Credit Guarantee Scheme, the Credit Capital Subsidy Scheme and the MSME Cluster Development Program for make the sector self-sufficient.
“With global realignment, SMEs would play an important role in redefining their contribution to the Indian economy. The government intends to expand the contribution of SMEs from 30% to 40% of GDP “, added the minister.
Emphasizing the importance of aligning with global value chains (GVCs), Gadkari added that as 80% of global trade is conducted through GVCs and most of the enterprises involved in GVCs are medium-sized enterprises, the government has taken several steps in this direction, including the adoption of technologies such as artificial intelligence and machine learning to strengthen the sector and also to increase global exports.
Gadkari also noted that reforms such as lowering corporate tax rates, 100% tax exemption for investors and implementing GST have positioned India as a competitive market in the world, especially in terms of ease of payment of taxes.
The Minister added that the government is committed to providing investors with a favorable environment and a transparent policy framework and that he is confident that India will become a major global investment destination.