India to spend 1.7 % of GDP on transport infra: Report

India will spend a whopping 1.7 per cent of its GDP on transport infrastructure this year, around twice the level in America and most European countries, the logistics update that will set stage to achieve a USD 5 trillion economy, said reports. Prime Minister Narendra Modi’s government has hiked capital outlay on infrastructure to USD 122 billion for the fiscal year starting April as it looks to provide a strong impetus to job creation and boost economic activity amid a global slowdown. According to official data, the Modi government has allocated Rs 2.4 lakh crore for railways capital expenditure, nine times higher than the amount in the financial year 2013-14. The funds will mostly be spent on building tracks, new coaches, electrification, and developing facilities at stations. Allocation for roads has jumped 36 per cent to Rs 2.7 lakh crore for 2023-24. There is also the focus on reviving 50 additional airports, heliports, water aerodromes and advance landing grounds for improving regional air connectivity, said reports. The government has identified 100 critical transport infrastructure projects for last and first-mile connectivity for the ports, coal, steel, fertiliser, and food grains sectors, where it intends to ramp up investments.