More foreign firms enlist to invest in India as infra projects fuel growth

New Delhi, July 6 (IANS) More large foreign manufacturers of heavy machinery used in the infrastructure sector figure in the list of more than 15,000 companies that have registered to set up units in the country during June, according to data compiled by the ministry of corporate affairs.

Senior officials see this as the outcome of the increasing demand for such machinery as the government is making massive investments in highways, ports, airports and railway projects.

It also reflects the success of the Government’s Make-in-India and Aatmanirbhar policy that encourages foreign companies to start operations in the country, an official said.

UK’s Auger Torque Europe Ltd, one of the foreign companies which has registered for starting operations in India, manufactures earth drills and attachments and is part of Germany’s Kinshofer Group which makes attachments for truck cranes and excavators.

Japan’s Tomoe Engineering Co Ltd, which is on the new list, manufactures machinery, equipment and chemicals.

Another Japanese company, Kawada Industries, Inc. is part of the KTI Kawada Group, which is the business of building, maintaining and preserving infrastructure.

Besides, a Russian heavy machinery manufacturer and a UAE-based energy company have also registered to set up operations in India.

Institut fuer Oekologie, Technik and Innovation Gmbh, also in the new list of foreign companies keen to set up base in India, provides testing and certification services for different industries.

These foreign companies are expected to bring in new technology and will complement the efforts of Indian companies that are operating in the infrastructure sector, a senior official pointed out.

Big-ticket infrastructure projects in the highways, railways and ports sector will continue to drive growth in the Indian economy as the Government has stepped up the outlay for these investments in the interim budget for 2024-25.

Government investments in large infrastructure projects create jobs and incomes that have a multiplier effect on the economy as demand for products such as steel and cement also goes up which leads to more private investments and employment. With the creation of additional jobs, the demand for consumer goods also increases leading to a further acceleration in the country’s economic growth rate.

To ramp up the virtuous cycle of investment and job creation, the budget for 2023-24 had ramped up the capital expenditure outlay on infrastructure projects by 37.4 per cent to a whopping Rs 10 lakh crore from Rs 7.28 lakh crore in 2022-23.

The interim budget presented by Finance Minister Nirmala Sitharaman has further enhanced by 11.1 per cent the allocation for infrastructure projects to a whopping Rs 11.11 lakh crore to spur growth. The increase that comes on top of a large base of the previous year will result in massive investments to spur growth. The finance minister pointed out that this will also attract big investments from the private sector which will accelerate the growth momentum.

The interim budget provides for a Rs 2.52 lakh crore capital expenditure for Railways in 2024-25. The finance minister has announced the implementation of three major economic railway corridor programmes namely energy, mineral and cement corridors; port connectivity corridors; and high traffic density corridors.

–IANS

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