PLENTY OF ROOM FOR GROWTH

Assocham Bulletin - - INDUSTRY -

Rail­way min­istry is fo­cussing more on im­prov­ing the in­fra­struc­ture of In­dian Rail­ways to cre­ate a proper logistics and seam­less move­ment of traf­fic. This was shared by Mr. Suresh Prabhu, Union Min­is­ter for Rail­ways at the ASSOCHAM Con­fer­ence on 'In­dia - on the Cusp of a Logistics Rev­o­lu­tion.'

The min­istry has sanc­tioned 16,500 km of dou­bling and tripling lines as against only 22,000 km in the last 70 years. Only 42% of elec­tri­fi­ca­tion has been made so far and will dou­ble in next five years plan.

"We are al­ready cre­at­ing about 100pri­vate freight ter­mi­nals with pri­vate par­tic­i­pa­tion so that more and more traf­fic can come to the rail­ways."

"We al­ready plan to save about Rs. 41,000 crores from the en­ergy bill and we have al­ready saved about 10% of that. So, all of this will re­sult in cre­at­ing a good lo­gis­tic back­bone for In­dia which will help In­dia to do much bet­ter busi­ness as logistics is key to suc­cess of in­dus­tri­al­i­sa­tion. The port con­nec­tiv­ity is also be­ing stream­lined with pri­vate par­tic­i­pa­tion into most of the sec­tors", said Mr. Prabhu. The CST, which is a game changer for the coun­try has cre­ated a fis­cal sit­u­a­tion wherein goods and ser­vices can move from one end to an­other with­out any hin­drance, said Mr. Prabhu.

On the histri­on­i­cally low con­sumer price in­fla­tion, Mr. Prabhu said, this is the re­sult of sound fis­cal mon­e­tary poli­cies in In­dia. "Our Prime Min­is­ter al­ready said that peo­ple at large are suf­fer­ing be­cause of in­fla­tion be­ing very high and the growth rate be­ing low'. So, it was dou­ble whammy. We ac­tu­ally re­versed it, in­fla­tion is low and growth is high means the com­mon peo­ple don't have to spend too much money on their daily ne­ces­si­ties and they will have more sav­ings', he added.

So, this will be virtue cy­cle from the vi­cious one pre­vi­ously. Now, growth ori­en­ta­tion will hap­pen through par­tic­i­pa­tion of large num­ber of peo­ple who will be en­ter­ing the mar­ket as savers rather than just con­sumers and spenders. This will be a good be­gin­ning and prob­a­bly over a pe­riod of time, will see more in­vest­ments com­ing in.

Mr. San­deep Ja­jo­dia, Pres­i­dent, ASSOCHAM in con­ver­sa­tion with Mr. Nitin Gad­kari, Union Min­is­ter for Ship­ping, Roads Trans­port and High­ways and Mr. Suresh Prabhu, Union Min­is­ter for Rail­ways.

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