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Infra Capacity Expansion Likely to Be the Key Focus of the Modi Government
May 30, 2019


If there is one area that needs immediate attention by the government, it is job creation.

According to a CMIE survey, the unemployment number stands at 41 million people. That is too big a number to be ignored.

Now, job creation at such a mass level won't be a walk in the park. To set the wheels in motion, the government will have to look at infrastructure spending.

Capacity expansion in new projects has seen a gradual slowdown in the past few years.

From Rs 3.3 trillion in June 2018, the number has come down sharply to Rs 2.1 trillion as of March 2019. I believe this will the first area the government will look to focus on. Apart from creating jobs in the infrastructure sector, it opens a lot of other avenues.

Better infrastructure will mean better connectivity to non-metros. This will attract manufacturing companies to set shop in these towns. It will give a boost to the urbanisation of the population.

This is a trend I see clearly playing out in the coming years.

Infrastructure spending -> Improved roads -> Increased two-wheeler sales.

It is just one of the 50 irreversible trends I believe will carry the Sensex to 1,00,000.

Data Source: CMIE

This Chart Of The Day was published in The 5 Minute WrapUp - How Modi 2.0 Will Benefit Investors in These 7 Stocks

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