Finance Minister Nirmala Sitharaman on Wednesday announced hiking the capital expenditure by 33 per cent to Rs 10 lakh crore for infrastructure development for 2023-24 and will be at 3.3 percent of the GDP.
Presenting the Budget, she said the newly established infrastructure finance secretariat will assist in attracting more private investment.
With an aim to further improve regional air connectivity, she said the government will revive 50 additional airports, helipads, water aero drones and advanced landing grounds.
The Budget also allocated Rs 3,113.36 crore to the union civil aviation ministry.
With this announcement several other sectors are expected to get the benefit.
The Economy Survey too highlighted that the country’s civil aviation sector has great potential owing to growing demand from the middle class, higher disposable incomes and favourable demographics, while air travel has rebounded with the lifting of the coronavirus pandemic-related curbs.
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The survey had listed various factors that are helping the civil aviation sector, including the UDAN (Ude Desh ka Aam Naagrik) scheme, which has considerably enhanced regional connectivity through the opening of airports in the hinterland.
Under the UDAN scheme, the total number of tourism routes has increased to 59 and presently, 51 are operational.
The survey noted that sectors like inland water transport and civil aviation that have significant untapped potential are also being encouraged sufficiently.
Experts from different industries have reacted to the latest announcements by the government and are hoping to see a positive impact on other sectors.
Shrikant Nibandhe, managing director, One World Logistics, said, “Focus on developing 100 critical transport and infra projects for last mile connectivity, developing 50 additional airports, heliports and aerodromes for regional connectivity and increasing the government’s capex to 2.4 lakh cr will provide boost to rural connectivity and reach. The FM’s focus on last mile connectivity, inclusive development and focus on skill development of the youth will become the key drivers of the nation’s growth.”
Pallavi Singh Marwah, Vice President at SPPL (Super Plastronic), said, “With the government announcing a 10 lakh crore capex budget, which amounts to 3.3% of the country’s GDP and the highest ever outlay for railways and development of over 50 airports, helipads, aerodromes, etc., it is evident that the government is focused on upgrading the country. This has been supported by the development of last-mile connectivity and a push to the tourism industry.”
Arun Lohiya, chief operating officer, CAD Ventures, said, “The diverse terrain and diverse weather conditions within India make it mandatory to have a much larger number of all-weather serviceable airports. The announcement of the new 50 airports goes well with the development of the aviation industry and the overall growth of the country. The aspiration to become a $5 trillion economy cannot be met without the presence of a robust transportation system. Kudos to the NHAI that today India is soon going to become one of the better countries with a network of world-class highways crisscrossing the Indian geography.”
Not only 50 additional airports augment the need for enhanced air connectivity but it will lead to the creation of thousands of jobs both directly and indirectly. It will provide ample opportunities for further aviation domains to grow and meet the expectations of the Indian population.
Harsh Bansal, MD, Unity Group, and Chairman, CII Delhi Panel on UD, RE and Infra said that the Budget was balanced targeting overall economic growth through increased focus on infrastructure development as 50 additional airports and heavy ports will be revived for regional air connectivity.
The Budget was based on seven priorities: Green growth, Youth power, Inclusive development, Reaching the last mile, Infrastructure and investment, Unleashing the potential, and launching of digital platforms.
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