RBI Governor Shaktikanta Das on Monday called for stepping up investments in the infrastructure sector and focus on the management of surplus agricultural produce to kickstart the economy reeling under the impact of COVID-19 crisis.
The country needs 4.5 trillion dollars for investment in infrastructure by 2030, he said while addressing members of the Confederation of Indian Industry (CII) National Council citing NITI Aayog estimates.
Das suggested high-speed rail infrastructure projects connecting the length and breadth of the country as a long-term measure to strengthen the sector.
“A big push to certain targeted mega infrastructure projects can reignite the economy. Both public and private investment will be key to financing the infrastructure investments,” he said.
“This could begin in the form of a north-south and east-west expressway together with high-speed rail corridors, both of which will generate large forward and backward linkages for several other sectors of the economy and regions around the rail/road networks.”
Besides, said Das, shifting the terms of trade in favour of agriculture is the key to sustaining a dynamic change and generating positive supply responses in agriculture.
“We need to move now to policy strategies that ensure a sustained increase in farmers’ income alongside reasonable food prices for consumers.”