Infra development will boost confidence of domestic and global investors as it will reduce the cost of doing business.
Lucknow: Lauding PM Modi for launching landmark projects in Varanasi, industry body Assocham said expanding investment in infrastructure will generate jobs, promote tourism and play catalytic role in overall growth and development of Indian economy.
Assocham secretary general Uday Kumar Varma on Wednesday said the government's vision for new and improved infrastructure that can serve the nation for a long time.
Varma was referring to the inauguration of a sewage treatment plant, two major national highways and an inland waterways project by the prime minister in his Lok Sabha constituency, Varanasi, on Monday. The prime minister launched projects worth Rs 2,413 crore, which includes a multi-modal terminal on the Ganga river.
Varma said, "Infrastructure development will boost the confidence of domestic and global investors/stakeholders as it will reduce the cost of doing business, stimulate economic growth, spur job-creation and improve living standards of the people, not just in Uttar Pradesh but countrywide."
"Our country needs reliable infrastructure to connect supply chains and efficiently move goods and services seamlessly, thus a multi-modal terminal on the Ganges offers an unprecedented opportunity for local businesses to export more goods and services and create high-quality jobs at home," Varma said.
Considering that infrastructure is vital to economic growth, he said, "India's ability to realise its competitive potential depends on making smart infrastructure choices, thereby responding to economic, demographic, fiscal, and environmental changes in order to help people, places and businesses thrive and prosper."
Varma also said that availability of infrastructure support would give fillip to the growth and development of micro, small and medium enterprises (MSMEs) which is critical to the overall growth of industrial sector in both UP and across India.
"Lack of proper infrastructural facilities causes a very serious damage to an enterprise's valuable chain process including production, consumption and distribution of products," he said, adding that this constraint is apart from scarcity of finances, inadequate marketing facilities and technological obsolescence that are being already faced by MSMEs.
"So, there is utmost requirement of infrastructure development for growth of industries in general, and MSMEs in particular, which should include all types of infrastructural facilities like railways, waterways, roadways and airways, proper channels of telecommunication, adequate supply of power and other supporting facilities like tool rooms, testing labs, design centers and others," the Assocham secretary general added.
PM Modi on Monday inaugurated India's first multi-modal terminal on the Ganga river and received the country's first container cargo transported on inland waterways from Kolkata. He also inaugurated two important roads, having a total length of 34 kilometres and built at a cost of Rs 1,571.95 crore.
The Ring Road will provide easier and more convenient access to Sarnath, an important site for Buddhist pilgrimage. He also inaugurated two sewage infrastructure projects worth Rs 425.41 crore in Varanasi and laid the foundation stone for another project worth Rs 72.91 crore for Ramnagar.