Atmanirbhar Bharat: Sectors That Provide Good Opportunities For Private Investment And FDI

Make in India programme of the government comes in a full circle when the feasibility of import replacement was deliberated between steel and auto industry.

Various agencies are putting forward their estimates for India’s GDP growth in Q1 FY21. That the economy performed much below normal contraction level due to the pandemic and the subsequent lockdown is a foregone conclusion and there is hardly any surprise awaiting on that count. Looking forward, the Q2 is yet to exhibit a sharp U type growth path, although the government is trying its best to help and support the economy within its own limitations of rising fiscal deficit, increasing food prices and unemployment. Unlike in some other advanced countries, specifically China, where massive stimulus measures have been announced out of mounting public debt and issuance of bonds to fund the expenditure.

The falling trend in GST collections in the first four months of the current fiscal year (collections of Rs2,72.642 crore— more than 20% shortfall compared to last year) and revenue loss in customs duty due to decline in imports (both oil and non-oil) have led to a limited fiscal space for the government to enhance investment in infrastructure. It is therefore certain that apart from roadways (NHAI for national highways from market borrowing), railways (DFC, Metro from World Bank and other foreign aid), affordable housing (under credit -linked subsidy scheme), pipeline expansion (transportation of gas and petroleum products funded by oil companies), there are other critical sectors left requiring massive private investment.

Source: Financial Express

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