Infrastructure is the go-to sector for governments to boost aggregate demand in an economy, when in an economic crisis, with very low consumption and unemployment, which is now in the times of pandemic.
The simple Keynesian economics suggests that, this infrastructure stimulus, when given as wages to those employed in infrastructure sectors, who, upon spending will stimulate economy, by consuming other goods, and generating demand in other sectors, which will further have multiplier effect.
Following the above-mentioned principles, the Narendra Modi Government has opted to stimulate economy using 50 major infrastructure projects to be executed on a high priority basis, the sole intention being employment generation, reported Money control.
One of the drawbacks of investing in infrastructure to stimulate economy is, in India, infrastructure projects are often very time consuming with environmental, legal and other protocols to be satisfied, can delay the stimulus when intended to be given, hence the 50 projects opted will be done on exclusive priority basis.
A senior official also said, these 50 projects have huge potential for employment generation, and are in their various stages of gestation, all that is needed is a final nation-wide push.
The 50 projects to be executed on priority basis include,
- Jewar International Airport in Greater Noida
- Navi-Mumbai International Airport
- Jawaharlal Nehru Port Trust (JNPT) Terminal 4
- Ahmedabad Metro Rail
- Chandram connectivity Highway project
- Vadodara-Mumbai expressway, and
- Planned second Chennai Airport.