India has Sustained Growth Despite Global Slowdown, Arun Jaitley Says

Despite global slowdown, India has successfully maintained high growth rate, and needs $1.5 trillion for infrastructure, finance minister Arun Jaitley said on Sunday.

“We have been able to sustain growth in the phase of global slowdown essentially on the strength of the infrastructure creation in India where the gap is huge,” Jaitley said at the Annual General Meeting of the Board of Governors of Asian Infrastructure Investment Bank (AIIB).

Mr. Jaitley said the government wants to connect seven hundred thousand villages with roads by 2019 as part of a massive modernization plan, and for this, the country needs over $1.5 trillion in investment in the next 10 years.

Jaitley said AIIB has emerged at a time when global economy is passing through a difficult phase, and that the Government of India is preparing basket of projects worth US$ 2-3 billion for AIIB funding in the areas of Urban Development, Energy, Urban Transport, Inland Waterways, Railways, and Water Supply.

“Over the next decade, we require over $1.5 trillion in India alone to fill up the infrastructure gap. We also use the additional resource which is available with us as a result of falling prices because that regime helps us. In investing large public finance into infrastructure, for instance, we have seventeen hundred thousand villages in India. We intend to connect each of them by 2019.”

“In terms of highway construction this year alone our target is 10,000km. Our railway system is over 100 years old. We are going in for a massive modernization,” he said.

According to Mr. Jaitley, while estimates of the global economic growth rates have been corrected, Asia-Pacific region is still working as a growth engine for the world.

Jaitley said India successfully maintained a high growth rate of 7.6% despite adverse conditions. Indian economic growth rate was at 7.2% one year ago. He said India wants to attract more FDI in the country, and is ready to put huge investments in rural infrastructure, national highways, shipping, power sector, and smart cities.

The Finance Minister also revealed that the central government is planning to convert railway stations into commercial hubs, and wants participation of private sector to achieve this goal. He said the government wants more airports and sea ports constructed in the country.

“These are all the emphasis areas we have under taken,” he said.