Budget 2025: Accelerate Infrastructure Spending Further For True Atmanirbhar Bharat, Says Nilesh Shah

True 'aatmanirbharta' or self-reliance can only be achieved through infrastructure spending as it does not require outside help, he says.

Government's investment in infrastructure, is "a fantastic silver bullet" for India's growth and self-reliance, says Nilesh Shah, Managing Director and CEO of Envision Capital. (Representative image. Source: Envato)

Accelerated infrastructure spending is key to achieving true aatmanirbharta or self reliance, according to Nilesh Shah, Managing Director and CEO of Envision Capital. 

Accelerated infrastructure spending is key to achieving true aatmanirbharta or self reliance, according to Nilesh Shah, Managing Director and CEO of Envision Capital. 

Speaking at the NDTV Profit's Investors' Guide, Shah highlighted the multi-faceted impact of sustained government investment in infrastructure, calling it "a fantastic silver bullet" for India's growth and self-reliance in a fast changing global economy.

Shah pointed out that post-Covid, the Indian economy has benefited significantly from a sharp increase in government spending, particularly in infrastructure. "One of the pillars and tailwinds that the market has had in the post-Covid era is the significant step-up in spending by the government, especially in infrastructure. That’s helped India sustain high growth rates," Shah said.

Shah noted that infrastructure spending, which accounts for 3–4% of India's $4 trillion economy, has far-reaching effects across sectors. "The multiplier effect of that on many sectors, especially cement and steel industries, job creation, employment, and credit growth, is huge," he said.

Nilesh Shah, MD and CEO of Envision Capital.  (Source: Envision Capital website)

Nilesh Shah, MD and CEO of Envision Capital.  (Source: Envision Capital website)

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In the Union Budget 2024-25, Finance Minister Nirmala Sitharaman announced an allocation of Rs 11.1 lakh crore for capital expenditure, representing 3.4% of GDP. She emphasised the government’s commitment to balancing fiscal priorities while maintaining robust support for infrastructure development.

Shah echoed this sentiment, highlighting the importance of government-led investments at a time when private sector spending shows signs of slowing.

"It becomes even more imperative because you're seeing signs of a slowdown in private spending and capex," he said. He added that the middle class, grappling with economic pressures, might reduce consumption-related spending, making government investments in infrastructure vital at this point.

Shah also lauded the government’s ambitious projects, including the Mumbai-Ahmedabad bullet train, as examples of how infrastructure can drive ease of living, indigenisation, and job creation. 

"The government is trying to indigenise infra projects and make parts in India. It has multiple purposes—building world-class infrastructure, local job creation, and fostering true Aatmanirbharta," Shah said.

As the Budget approaches, Shah noted the importance of Aatmanirbharta or self-reliance. "Infrastructure is a better use of capital," he said, underscoring its potential to make India "greater" in a time when the whole world is focused on making America "great again". 

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WRITTEN BY
Neha Aravind
Neha Aravind is a desk writer at NDTV Profit, who covers business and marke... more
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