GENERAL ELECTIONS: ADVANTAGE INFRASTRUCTURE

'Cautiousness & Consciousness' have become the catchwords for both investors and the government as India approaches the next General Elections, which are scheduled from April 16 to May 13 amid a worldwide economic recession.

India's challenge is not only to augment its antiquated infrastructure, but also to build new infrastructure to keep up with its $1 trillion economy and the aspirations of its 1.2 billion population that grows by 16 million people each year.

Recognising that good governance and infrastructure are a vital pre-requisite to keep ‘India Shining’ at Gross Domestic Product (GDP) growth of more than 7%, infrastructure development has been accorded key priority for the 11th Five-Year-Plan for the years 2007-2012 and the 12th plan period 2012-2017 with projected investment requirement of $500 billion and $1.5 trillion respectively by the Prime Minister's Committee on Infrastructure.

The interim budget for the financial year 2009-10 announced by the Finance Minister also sets the ground for how the ruling United Progressive Alliance (UPA) will approach the General Elections, announcing that 9% of the country’s GDP will be spent on infrastructure by 2014 (Interim Budget: Continuity Of Growth).