Budget 2024: Infrastructure-led growth to be the cornerstone of India's economic future, says Amitabh Kant

Amitabh Kant, the G20 Sherpa and former CEO of NITI Aayog, expressed his belief in the transformative power of infrastructure for India's economic growth.

"I'm not a great believer in a consumer-led growth story. I'm a great believer in an infrastructure-led growth story," Kant stated in an interview to CNBC-TV18.

According to Kant, the key to achieving sustained growth rates of 9-10% lies in an unwavering commitment to developing robust infrastructure.

Kant's vision aligns with the recently unveiled interim Budget for 2024 by Finance Minister Nirmala Sitharaman. According to Kant, the budget, presented on February 1, reflects the government's confidence in a strong comeback and commitment to fiscal discipline. The fiscal deficit, a crucial economic indicator, is projected to be at 5.1%, with a clear roadmap towards reducing it to 4.5% in the subsequent year.

"I was quite impressed by the fact that it's talking about fiscal deficit at 5.1%. And then laying down a clear roadmap for 4.5% in the subsequent year. And I think that's really critical because that would really mean that the government will borrow less and interest rates should come down," remarked Kant.

He believes that lower interest rates will enable the private sector to access resources at more favourable terms, ultimately catalysing a significant uptick in private sector investment.

Kant also commended the budget for its focus on rural development through infrastructure projects. He highlighted the potential benefits of creating roads, introducing electric buses, providing rural housing, implementing rural solar rooftop initiatives, and ensuring piped water connections in rural areas. These initiatives, according to Kant, will not only enhance infrastructure but also generate consumer demand by uplifting the rural population.