Pivotal Role of Private Sector in India's Infrastructure Boom: Economic Survey 2023-24

The Economic Survey 2023-24 highlights the need for enhanced private sector financing and new resource mobilization to construct quality infrastructure in India. It stresses policy support from all government levels, improved data capture/reporting mechanisms, and viable public-private partnership projects. Significant investments in infrastructure, particularly in railways, highways, and ports, are noted.

The Economic Survey 2023-24 underscores the critical necessity for increased private sector financing and resource mobilization from new sources to develop quality infrastructure across India. This pivotal document, tabled in Parliament by Finance Minister Nirmala Sitharaman on Monday, emphasizes the coordinated effort required from central, state, and local governments to facilitate this ambition.

The survey identified the need to enhance data capture and reporting mechanisms for infrastructure investments across various instruments and sectors to understand demand and track the utilization of current facilities. Existing databases fall short in these areas, it added.

International examples underscore how sub-national initiatives can galvanize resource mobilization for infrastructure development. The survey suggests that viable projects under the public-private participation model should emerge, given the fiscal constraints and consolidation plans of both Union and state governments.

(With inputs from agencies.)