(MENAFN- KNN India)
Economic Survey 2022-23 emphasizes need to invest in Industrial Infrastructure
New Delhi, Jan 31 (KNN)
The Economic Survey 2022-23 presented in the Parliament on Tuesday has stressed that Industrial infrastructure is a critical component for the growth and competitiveness of the Indian economy.
The survey has underlined the need for investment in industrial infrastructure, including measures to improve the availability and quality of power, water, and transportation services.
During the pre-budget meeting with the Union Finance Minister Niramala Sitharaman, Federation of Indian Micro and Small & Medium Enterprises (FISME) had raised the issue of crumbling infrastructure in industrial areas and suggested that a fund be created to finance upgradation of industrial infrastructure.
“Besides the creation of Fund, the authorities in whose jurisdiction the industrial areas operate also need to transfer the powers for management of industrial areas to the local associations,” said Prashant Patel President of FISME.
The Economic Survey highlights the need for measures to enhance the efficiency of existing industrial clusters and to promote the development of new ones.
India to witness GDP growth of 6.0 per cent to 6.8 per cent in 2023-24, depending on the trajectory of economic and political developments globally, as per the economic survey.
The forecast for economic growth sees a downfall from the expected rate of at 7 per cent for the year ending March 2023.
While credit growth to the MSME sector has been considered high, over 30.6 per cent, on average during Jan-Nov 2022, supported by the extended Emergency Credit Linked Guarantee Scheme (ECLGS) of the Union government, said the survey.
It adds that the recovery of MSMEs is proceeding apace, as is evident in the amounts of GST
they pay, while the ECGLS is easing their debt servicing concerns.
The projection is broadly comparable to the estimates provided by multilateral agencies such as the World Bank, the IMF, and the ADB and by RBI, domestically.
It says, growth is expected to be brisk in FY24 as a vigorous credit disbursal, and capital investment cycle is expected to unfold in India with the strengthening of the balance sheets of the corporate and banking sectors.
Further support to economic growth will come from the expansion of public digital platforms and path-breaking measures such as PM GatiShakti, the National Logistics Policy, and the Production-Linked Incentive schemes to boost manufacturing output.