Budget Reactions: Jindal SAW says infra push to help India attain 6.9% growth

By Indresh Batra, Managing Director, Jindal SAW

The Union Budget 2012-13 presented by Finance Minister Pranab Mukherjee provides great opportunities for the infrastructure sector. It lays emphasis to meet growing needs of infrastructure sector with signs of an economic recovery in India. For India to attain its envisaged 6.9% growth during the coming financial year, the requirement for sustainable infrastructure development is crucial to provide impetus to the economic activities and achieve optimum resource utilization. 

Also, as stated by The Minister, infrastructure will require Rs 50 lakh crore in 12th Plan, half of this from the private sector; this would boost the sector as with a growing economy and a two digit growth expected over the next four years, infrastructure sector would require a lot of growth and the right amount of incentives. The sector needs to increase private investment in various forms, including Public Private Partnership (PPP) as it not only provides the much needed capital but also help to lower costs and improve efficiencies in a competitive environment. 

Besides this, the announcement on development of urban infrastructure including metro rail projects, road building, comprehensive water management and sewage treatment plants in various cities in country, introduction of much awaited implementation of GST and the reduction on withholding tax on external commercial borrowings, airlines, roads, bridges, affordable houses and fertilizer sectors would foster the sector