Question

How much India needs to invest on infrastructure to become USD 5 trillion economy by 2024-25?

• A. USD 1.2 trillion
• B. USD 1.4 trillion
• C. USD 1.6 trillion
• D. USD 1.8 trillion

Answer 1

The Correct Option is B

To understand the investment required for India to become a USD 5 trillion economy by 2024-25, we need to look at the economic growth requirements and the role of infrastructure development in achieving such growth.

As per various economic analyses and government reports, infrastructure development is crucial because it enhances productivity, reduces costs of production, and promotes efficient supply chain logistics. Given this context, India has identified significant infrastructure investment as key to reaching the USD 5 trillion target.

According to reports, including the Economic Survey and various studies by financial bodies, India needs to invest approximately USD 1.4 trillion in infrastructure over the specified period to achieve this economic target. This investment covers critical sectors such as roads, railways, energy, housing, urban infrastructure, ports, and airports.

The other options, USD 1.2 trillion, USD 1.6 trillion, and USD 1.8 trillion, do not align with these strategic economic projections. While USD 1.2 trillion might be insufficient to cover the comprehensive needs of infrastructure expansion, USD 1.6 trillion and USD 1.8 trillion exceed the estimated requirement and reflect a buffer or additional capacity development which is strategically unnecessary.

Therefore, the correct answer is:

• USD 1.4 trillion

This investment is planned over several years and requires coordinated efforts from both the public and private sectors, as well as leveraging financial models like Public-Private Partnerships (PPPs).

In summary, the strategic economic goal of becoming a USD 5 trillion economy aligns with a focused investment in infrastructure, pegged at USD 1.4 trillion.