India Inc happy over PM's new infra plans

Last Updated: Fri, Jun 08, 2012 05:18 hrs

A day after Prime Minister Manmohan Singh approved key infrastructure projects and reiterated his government's resolve to remove bottlenecks to growth, India's industry leaders welcomed the government move, saying it would "increase investors' confidence".

"Any initiative that will spur growth, job creation and economic activity is a welcome move and will increase confidence of investors," S Gopalakrishnan, executive co-chairman of Infosys Ltd, said on the sidelines of the ongoing the Global Investors Meet here.

Yesterday, Prime Minister Singh promised a big push to infrastructure development in the country and also quick action in awarding airports, highways and port projects. With this, the government intends to boost investment and growth in difficult times.

The government's move comes a few days after official data showed India's gross domestic product growth slowed to a nine-year low of 5.8 percent in the March quarter.

"The perception about investment in India is not good at this point. The reality may be different, but unfortunately the perception is not good and that's what we need to address. The prime minister's move is a part of this, and I hope there are more announcements and action on the ground," Gopalakrishnan added.

In his speech, the prime minister said the development of infrastructure would remove the supply constraints that affect industry and trade. The needs of infra sector are vast over $1 trillion in the next five years.

Singh also promised contracts for 9,500 km of highways and port projects worth Rs 35,000 crore, besides public-private partnership projects to develop at least 20 airports .

Added Baba Kalyani, chairman and managing director, Bharat Forge Ltd: "It's a big positive move from the government. These are important issues. There was not enough attention for the past few months (on infrastructure). If this gets implemented, we should see some acceleration in the growth."

Sajjan Jindal, chairman of the Jindal Group, said agrees to others.

"I think it is very positive move by the prime minister," he said, adding: "He has set up a committee which will coordinate and oversee the implementation of projects and I feel it is a good idea from the government."

More from Sify: