Infrastructural Development: The Ultimate Tool for a Win?

Updated: May 2

By Namrata Madhu Raghunath

I. Introduction

A vision of industrial prowess and a symbolic reflection of completed agendas. The current central government has often been associated with the notion of striving to achieve the best results. Whether it is concerning world politics or infrastructural development, the government has invested, cultivated, and eventually achieved its goals. A word commonly used to define India is now ‘potential’. Potential to improve and develop. And that is exactly what the current government has both achieved and proposed by way of increasing and focusing more on the development of the country’s infrastructure. Considering India’s vision for 2047 is to become a 40 trillion-dollar economy, from a developing to a developed economy, infrastructural progress plays a pivotal role.[1] With the rise of Artificial Intelligence and technological advancements, the need for digitizing information, specifically politically affiliated information has been a point of discussion. The Department of Administrative Reforms and Public Grievances (DARPG) is trying to facilitate a collaboration with such advancements to provide access to such information to the public.[2] Ultimately, the key tool required to achieve such kind of feat is infrastructure.

As it is going to be discussed in the article, the creation of a progressing environment as a potential investment magnet, is key to extract resources (i.e., funds) to finance infrastructural development. By looking at projects such as the Atal Setu Sea-Link or even the Ram Mandir, it is evident that development leads to economic prosperity of the parties involved. For instance, it was noticed that the shares prices of Larsen and Turbo experienced a 231% jump which not only benefited the company, but also instigated a chain reaction by way of increasing the public’s passive income earned through these shares. Thereby, leading to increase in qualitative living.[3] Therefore, by analyzing the Interim Budget issued by the present ruling government, the article will discuss the importance of infrastructural development in a country like India. Part I of this article investigates the infrastructural outlays that the current central government has invested in, to develop the country’s infrastructure by referring to the recent interim budget. Part II will delve into the impact of development by way of change in the outlays. Part III will conclude the article by discussing the potential impact that might ensue over the upcoming elections.

II. Development as a vision

It is a given that development leads to a proportional increase in qualitative living.[4] Considering the rapid expansion of the steadily increasing demands of the population, the government has taken initiatives to compensate by way of resource allocation. The current government has proposed to increase the infrastructural expenditure by 11.1% (11,11,111 crores) which will essentially be 3.4% of the GDP. [5] Considering that the article primarily focuses on the interim budget issued by the current central government in 2024, the article will investigate the different investment outlays pertaining to the infrastructural development of India. Keeping that in mind, the recent interim budget emphasizes the fact that the current central government plans on revamping the concept of infrastructural development that will not only foster a system capable of efficiently facilitating a 5 trillion-dollar economy by 2025[6] but also improve the qualitative aspect of living for the people. The Finance Minister, Mrs. Nirmala Sitharaman expressly stated the government’s desire and the country’s need for improved and efficient infrastructure by referring to the rapid growth of the rural and urban-middle-class population in India.[7]

The primary focus of the interim budget is on the outlays laid out for infrastructural development. For instance, the Gati Shakti program aims to facilitate a multi-modal connection across the country by allocating resources for developing the port, energy, mineral, cement, and high-traffic density corridors.[8] 40,000 normal rail bougies are said to be converted to match the Vande Bharat standards of safety, comfort, and convenience. Referring to the 2023-2024 budget, the government “enhanced the investment outlay of nearly 1.3 lakh crores with the aim of incentivizing state governments for infrastructural development and also improved inter-government cooperation and efficiency. The budget also had a capital outlay of Rs. 2.40 lakh crore (US$ 29 billion) provided for the Railways, which is the highest ever outlay and about 9 times the outlay made in 2013-14.[9] This not only ensures safer travel but also ensures improved quality of living and ultimately, accessibility to such resources.

Similarly, the aviation sector has witnessed a boom in recent years with airport infrastructure doubling in count.[10] The interim budget for project UDAN expressly claims to continue the expansion of existing and new airports.[11] Concerning the above mentioned point about population growth, the central government through project NaMo Bharat is planning to focus on facilitating transit-oriented development. The NaMo Bharat is a project that aims to mimic the Delhi metro system by introducing a Regional Rapid Transit System (RRTS) to bring forth connectivity within the Delhi - NCR region. The primary objective is to connect distant areas in Uttar Pradesh, Haryana and Rajasthan and make it accessible to the NCR. Thereby, boosting the economy by providing employment opportunities. The NaMo Bharat Project is managed by the National Capital Region Transport Corporation (NCRTC) and became operational on 20th October 2023.[12] Further, the interim budget also discussed the aspect of improving tourism by way of infrastructural development after the recent boom in tourism, specifically religious tourism. The finance department of the current central government has dedicated a sum of 75,000 crores as a 55-year interest-free loan to carry out the above mentioned projects smoothly.[13]

Recent examples are the completion of the Atal Setu Sea link in Mumbai and the Ram Mandir in Ayodhya. The Atal Setu Sea Link also known as the Mumbai Trans-Harbour Link (MTHL), is a 21.8 km, 6-lane road bridge that connects Mumbai and Navi Mumbai.[14] The Atal Setu Sea Link was administered by the Mumbai Metropolitan Region Development Authority (MMRDA) which aimed to provide faster connectivity with far off districts like Raigad and satellite cities like Navi Mumbai.[15] Similarly, the Ram Mandir, which was consecrated in Ayodhya, was administered and funded by the Shri Ram Janmabhoomi Teerth Kshetra which is a trust fund set up by the Government of India on 5th February 2020.[16] The plight of the government towards such a change has seen drastic and ever-lasting results and will continue to do so. For instance, it is a well-known fact that the entity Larson & Turbo was entrusted with the completion of the Ram Mandir.[17] Considering the economic scale of the project which spanned to a whooping sum of 1,800 crores, the consequences are to be acknowledged as a net positive.[18]

Not only has the completion of such a monument fulfilled the sentiments of many but has a) led to the development of the state of Uttar Pradesh by revamping the infrastructure for the opening ceremony of the temple; b) led to a surge in stock prices and economic profits of the multiple companies like Indigo and Thomas Cook, thereby boosting employment opportunities and incentivizing companies to invest.[19] In addition, the stock prices of Larsen and Turbo shot up to a whopping worth of rupees 3,605 from the initial price of 1080 on 15th January 2024 (this was a 233% increase in stock price).[20]Speaking truly from a law and economics perspective, the completion of such projects has not only resulted in the infrastructural development of the state but also the economic development that will eventually contribute to the country’s GDP. Further, as per the Ayodhya Master Plan 2031, the state is preparing to execute projects worth 85,000 crores.[21]

Ultimately, the interim budget highlights the potential investment outlays carried out in pursuant to improving the development of the country. As mentioned above, the investments poured into projects like the NaMo Bharat does not only secure connectivity but also ensures access to facilities that will in turn increase the quality of life of people. By connecting cities, employment opportunities are not only made available to men but now women in the present economy, thereby, leading to the empowerment of women.[22] By way of facilitating development in the aviation and maritime sectors, the government is not only improving the facilities required to run a successful economy but also acknowledging the geo-political importance of such sectors with regard to an expanding India.

III. Conclusion

As discussed above, the need for development is not just in the infrastructural front but also in other avenues such as the economy, healthcare and education. On the same lines, the interim budget highlighted the importance of improving the healthcare sector by way of establishing more medical colleges that will help train professionals in the field. The budget while stating that a special committee will be set up to hear the recommendations for the same, stated that the current central government will also seek to encourage individuals, specifically girls between the age of 9-14 years to get vaccinated to prevent cervical cancer.[23]

The current central government’s drive to create an efficient, self-automated system of multi-connectivity in the infrastructural front has led to very promising results. Coupled with the string of successful completion of infrastructural projects across the country, the government has instilled a sense of hope that the government is doing its job. By incentivizing companies to invest, and by improving living standards in both the rural and urban sectors of the country, the current central government has made accessibility easier and as some might say, equitable. The positivity surrounding the completion of such projects is seen through the boom in the economy and popularity in the geopolitical world. With the upcoming elections, the central government has stacked promises of development, but the crucial question is whether or not the government can achieve the over-arching purpose of social welfare by way of completion and cooperation. It is evident that such achievements are a tool for ‘the win’, in the world of politics, but is it guaranteed in the ever-changing world? Only time will tell.

References

[1] Invest India, Infrastructure Development in India (2023), <https://www.investindia.gov.in/team-india-blogs/infrastructure-development-india>.

[2] DARPG, India@2047 vision – Bringing Citizens & Government Closer, <https://darpg.gov.in/sites/default/files/final%20vision%20india2047..approved.pdf>.

[3] Vanya Gautam, India Times - Ahead Of Inauguration In Ayodhya, Shares Of Ram Mandir Maker L&T Soar To An All Time High (2024), <https://www.indiatimes.com/worth/news/lt-shares-all-time-high-ram-mandir-inauguration-625455.html#>.

[4] Vol 24, Issue 1, Reena Agarwal, Review of Infrastructure Development and its Financing in India – Infrastructure: The Growth Driver (2020) <https://journals.sagepub.com/doi/10.1177/0971890720914096>.

[5]Para 61, Infrastructure Development, Interim Budget Speech of Nirmala Sitharaman (2024-2025) <https://www.indiabudget.gov.in/doc/budget_speech.pdf>.

[6] Press Information Bureau (PIB), Vision of a USD 5 Trillion Indian Economy (2018) <https://pib.gov.in/Pressreleaseshare.aspx?PRID=1549454>.

[7] Para 66, Metro and NaMo Bharat, Interim Budget Speech of Nirmala Sitharaman (2024-2025), <https://www.indiabudget.gov.in/doc/budget_speech.pdf>.

[8] Para 62, Railways, Interim Budget Speech of Nirmala Sitharaman (2024-2025),<https://www.indiabudget.gov.in/doc/budget_speech.pdf>.

[9] IBEF, Infrastructure Sector in India, <https://www.ibef.org/industry/infrastructure-sector-india>.

[10] Para 65, Aviation Sector, Interim Budget Speech of Nirmala Sitharaman (2024-2025) <https://www.indiabudget.gov.in/doc/budget_speech.pdf>.

[11] Supra 8

[12] Namo Bharat’s Regional Rapid Transit System: A Paradigm Shift in Urbanization and Economic Growth (2024), <https://www.narendramodi.in/namo-bharat-s-regional-rapid-transit-system-a-paradigm-shift-in-urbanization-and-economic-growth-579800>.

[13] Interim Budget Speech of Nirmala Sitharaman (2024-2025), <https://static.pib.gov.in/WriteReadData/specificdocs/documents/2024/feb/doc202421304701.pdf>.

[14] Purnima Shah, ‘Atal Setu, India’s longest sea bridge, inaugurated’ (The Hindu, 2024), accessed from <https://www.thehindu.com/news/cities/mumbai/mumbai-trans-harbour-link-indias-longest-sea-bridge-inaugurated/article67735438.ece>.

[15] Mumbai Trans Harbour Link, MMRDA - Transport, <https://mmrda.maharashtra.gov.in/projects/transport/mumbai-trans-harbour-link/overview>.

[16] Shri Ram Janmabhoomi Teerth Kshetra, <https://srjbtkshetra.org/>.

[17] BL Mumbai Bureau, Shri Ram Janmabhoomi Mandir built to last 1000 years, says L&T, The Hindu Business line (2024) <https://www.thehindubusinessline.com/companies/shri-ram-janmabhoomi-mandir-built-to-last-1000-years-says-lt/article67762169.ece#>.

[18] Jayant Pankaj, Hindu Business Line – Ayodhya Ram Mandir: The Cost and the Funding (2024), <https://www.thehindubusinessline.com/data-stories/data-focus/ayodhya-ram-mandir-the-cost-and-the-funding/article67748796.ece>.

[19] Debraj Bhattacharya, Forbes India – Ayodhya Connection: Stocks that have surged ahead of Temple Inauguration (2024), <https://www.forbesindia.com/blog/markets/ayodhya-connection-stocks-that-have-surged-ahead-of-temple-inauguration/>.

[20] Dev Sethia, The Financial Express – Ayodhya Temple Inauguration Impact: These Stocks yield almost 150% in one month (2024), <https://www.financialexpress.com/market/ayodhya-temple-inauguration-impact-these-stocks-yield-almost-150-in-one-month-3371162/#>.

[21] Ayodhya Development Authority, Ayodhya Master Plan 2031, <https://www.ayodhyada.in/MasterPlan.aspx>.

[22] Supra 12

[23] Supra 7

Namrata Madhu Raghunath is a third-year law student at Jindal Global Law School. Areas of interests include international law, criminal law, property law and refugee laws.