In line with its election promise, the Narendra Modi government unveiled the $1.4-trillion National Infrastructure Pipeline (NIP) that envisages an unprecedented building programme in sectors such as roads, energy, railways, urban development, agricultural infrastructure, education, healthcare and digital services. The proposed time period is five years and the projects are spread across 18 states and Union Territories. The NIP will be expanded when proposals from all of India’s 28 states and nine UTs come in over the next few weeks.
Indian Finance Minister Nirmala Sitharaman made this announcement on New Year’s Eve. The Centre and the States will each meet 39 per cent of the proposed outlay, while the private sector is expected to fund the balance 22 per cent. This investment programme is a critical step in India’s journey towards the Modi government’s ambition of India becoming a $5-trillion economy over the next five-to-six years.