India government approves $6.9bn investment proposal

India’s federal government has given the green light to investment proposals amounting to 564.2 billion rupees ($6.88 billion) for state governments as part of a scheme that offers interest-free loans for infrastructure expenditure, as stated by the finance ministry. This move follows the announcement made in the 2023/24 Union Budget, wherein the federal government pledged to extend 50-year interest-free loans worth 1.3 trillion rupees to states during the current fiscal year.

The approved capital investment projects will cover various sectors, including health, education, irrigation, water supply, power, and roads, among others, according to the ministry’s statement. These initiatives aim to boost infrastructure development and address critical needs in different areas across the country.

In the previous year, out of the 1 trillion rupees allocated for the scheme, investment proposals worth 952 billion rupees were approved by the federal government. Subsequently, an amount of 812 billion rupees was released to the states, facilitating the implementation of infrastructure projects and supporting economic growth.

This renewed commitment to providing interest-free loans for infrastructure spending demonstrates the government’s focus on promoting development and addressing key areas of concern. The investments in sectors like health and education will contribute to improving public services and the overall well-being of the population. The allocation of funds for essential infrastructure projects underscores the government’s dedication to advancing India’s economic and social progress.