Infrastructure growth momentum to continue, Icra predicts robust growth with increased allocations – Infrastructure News

Icra on Friday (June 7) stated that the new government will maintain its focus on the infrastructure sector, with increased allocations for railways, roads, and water projects. The rating agency in its latest statement said that while there may be some re-prioritization among different infrastructure sub-segments to accommodate stakeholders, capital expenditure on infrastructure is expected to sustain robust growth.

“There could be some re-prioritisation between various infra sub-segments to accommodate all the stakeholders; however, the capital outlay towards infrastructure is expected to sustain the healthy growth momentum, given the overall GDP multiplier effect of infrastructure spending and consequent job creations in the unskilled and semi-skilled segment,” Icra said in a statement.

This is attributed to the overall GDP multiplier effect of infrastructure spending and subsequent job creation in the unskilled and semi-skilled sectors. 

Modi set to take oath for third time

Narendra Modi is set to take office as Prime Minister of India for the third consecutive term. However, his victory in the recent elections fell short of expectations, prompting his party, the BJP, to enter into a coalition government to share power.

With the NDA securing 293 MPs, comfortably surpassing the majority mark of 272 seats in the 543-member Lok Sabha, stability appears ensured for the new government.