KPMG in India released report on National Infrastructure Pipeline
The report highlights how India can achieve the National Infrastructure Pipeline (NIP) task force’s investment target
KPMG in India’s new report titled ‘Catalysing the National Infrastructure Pipeline – Project India’ highlights how India can achieve the National Infrastructure Pipeline (NIP) task force’s investment target. The report proposes actions and policy recommendations to mitigate the impact of COVID-19 on India’s Infrastructure Vision 2025. Noting that the COVID-19 crisis has necessitated creative solutions to bridge the investment gaps in infrastructure, the report suggests that the government should revise its project priorities under NIP and focus on ensuring effective domestic resource utilisation, gaining outcome-focused financing support from international financial institutions and harnessing capital from private stakeholders.
Arun Kumar, chairman and CEO, KPMG in India, said, “As India faces one of its most challenging times since Independence, infrastructure spending can help spur economic activity and the involuntarily unemployed through job creation. Given the magnitude of the COVID-19 pandemic and consequent pressure on resources, it is imperative that stakeholders reassess the priority of sectors and projects outlined in Infrastructure Vision 2025. Typically, infrastructure projects are characterised by high capital intensity and long gestation periods, often leading to a funding gap. Public investment is key to filling this gap. A prerequisite to this is an enabling governance and policy framework that fosters business growth and investor confidence while rethinking innovative investment and funding models to encourage private sector participation.”
Speaking about the report, Elias George, partner and head – Infrastructure, Government and Healthcare (IGH), KPMG in India, said, “The disruptions caused by COVID-19 have highlighted the criticality of fundamentally rethinking many aspects of human endeavour. Investments in infrastructure have a multilayered spill-over impact on the economy, affecting overall growth as well as the prospects of businesses and individuals. This report examines India’s infrastructure needs driven by rapid urbanisation and the impact of COVID-19 on India’s Infrastructure Vision 2025 and its goals. It also highlights key steps for mitigating adverse impacts, in addition to identifying the building blocks of success.”
Read the report here.