Dear Investor, The best way for the government to revive economy that is adversely hit by pandemic is massive spend on infrastructure which not only benefits the infrastructure and related sectors, but also leads to job creation & has a GDP multiplier effect. Key highlights of government spend on infrastructure: - In Union Budget 2021 government allocated Rs. 2,33,083 crore on transport infrastructure & expanded National Infrastructure Pipeline (NIP) to 7,400 projects.
- Government infrastructure spending for 4 years beginning 2019 is estimated to be massive US $ 1.4 trillion.
- Pradhan Mantri Gati Shakti Plan was launched in Oct 21 so that infra projects could be planned & implemented in an efficient manner.
How does this focus on infrastructure translate into opportunity for investors? Best way for investors to leverage these opportunities arising out of growth in infrastructure development is through mutual funds that are specifically focused on infrastructure space. |