Need to raise infrastructure sector investment to 10% of GDP: Assocham

Chennai: The country needs to increase its investment in the infrastructure sector to 10% of its total GDP to make the government’s ambitious ‘Make in India’ programme successful, according to a joint study by industry body Assocham and Thought Arbitrage Research Institute (TARI).

“Investment in infrastructure needs to go up from the current level of 6% of gross domestic product (GDP) to about 10% to ensure Make in India initiative leads the country’s growth…,” the study said.

Suggesting that the pension and insurance funds being “long-term investors” may be mobilised for infrastructure spending, it said “public-private partnership model should be redesigned through engineering, procurement and construction model.”

The theme of the study was “Make in India: The next leap”, which was released by Assocham Southern Council Chairman Ravindra Sannareddy along with Director General D S Rawat.

Stating that land acquisitions were needed to be facilitated for developing physical infrastructure, it said, “Special Economic Zones need to be revived by a systematic review for their failures (in attracting investments).” The study also said the culture of entrepreneurship needs to rise in India as only 4.12% of the population in the age group of 18 to 64 was indulged in business.