PLENTY OF ROOM FOR GROWTH
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.