Increase in capital outlay towards infra investment great boost to economy: Industry leaders

The increased capex to 3.3 per cent of GDP will boost the industry and increase construction and development activities, thus creating jobs and driving economic growth, Sharda said.The budget has underlined the need for big capital investment in infrastructure as the key driver for the overall economic growth, Allcargo Group Founder and Chairman Shashi Kiran Shetty said.The finance minister said that investments in infrastructure and productive capacity have a large multiplier impact on growth and employment.

Increase in capital outlay towards infrastructure investment in the Union Budget 2023-24 is a great boost to the economy in the medium to long run and continued focus on infrastructure development will enable economic growth as well as create more jobs, the industry leaders said on Wednesday.

Finance minister Nirmala Sitharaman announced hiking the capital expenditure for infrastructure development by 33 per cent to Rs 10 lakh crore for 2023-24, which is 3.3 per cent of the GDP.

''Infrastructure capital expenditure increased by 33 per cent over the last year -- continued focus on infrastructure development will enable economic growth as well as create more employment. Huge capital expenditure in infrastructure will create a great multiplier effect for the economy,'' Debashish Biswas, Partner, Deloitte India, said.

According to J Kumar Infraprojects Managing Director Kamal Gupta, this year's budget will go down in history as a memorable one for the country's infrastructure sector with a record allocation of Rs 10 lakh crore.

The finance minister has accorded the highest priority to rail, metro, national highways and roads, ports, logistics and shipping as state-of-the-art infrastructure is a prerequisite for building a globally comparable economy.

Commenting on the infrastructure sector, Infra.Market co-founder Aaditya Sharda said that the Union Budget will have a hard-hitting impact on the infrastructure sector and the economy.

The increased capital investment outlay and grants of Rs 3.7 lakh crore are likely to attract private investments and drive growth in the infrastructure sector. The increased capex to 3.3 per cent of GDP will boost the industry and increase construction and development activities, thus creating jobs and driving economic growth, Sharda said.

The budget has underlined the need for big capital investment in infrastructure as the key driver for the overall economic growth, Allcargo Group Founder and Chairman Shashi Kiran Shetty said.

The finance minister said that investments in infrastructure and productive capacity have a large multiplier impact on growth and employment. After the subdued period of the pandemic, private investments are growing again.

''The Budget takes the lead once again to ramp up the virtuous cycle of investment and job creation,'' she added.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)