ICRA has stated that the new government will continue to prioritize the infrastructure growth, with increased funding for railways, roads, and water projects. Despite potential re-prioritization among sub-segments, capital expenditure on infrastructure is expected to maintain robust growth, driven by the GDP multiplier effect and job creation in unskilled and semi-skilled sectors.
ICRA has announced that the new government will continue to prioritize the infrastructure sector, with increased allocations for railways, roads, and water projects. In its latest statement, the rating agency noted that while there may be some re-prioritization among different infrastructure sub-segments to accommodate stakeholders, capital expenditure on infrastructure is expected to sustain robust growth.
In its statement ICRA said, “There could be some re-prioritisation between various infra sub-segments to accommodate all the stakeholders; however, the capital outlay towards infrastructure is expected to sustain the healthy growth momentum, given the overall GDP multiplier effect of infrastructure spending and consequent job creations in the unskilled and semi-skilled segment.”
This growth is attributed to the overall GDP multiplier effect of infrastructure spending and the resulting job creation in the unskilled and semi-skilled sectors.
Stability for the new government seems certain after the NDA secured 293 MPs, easily surpassing the majority threshold of 272 members in the 543-member Lok Sabha. Shri Narendra Modi is set to take office as Prime Minister of India for the third consecutive term.
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