Modi pledges $1.44trn on infrastructure to woo voters as elections near

Bloomberg

Prime Minister Narendra Modi’s ruling Bharatiya Janata Party pledged spend $1.44 trillion on infrastructure to boost the economy and raise living standards, in a bid to match its main rival’s populist promises.
The BJP, which is seeking to retain power in elections starting April 11, released its manifesto in New Delhi, reiterating its pledge to double farmers’ income by 2022, improve GDP share from manufacturing and double exports. It will also scrap Article 370 of the Indian Constitution which grants special concessions to the disputed state of Kashmir.
India’s 263 million farmers are a key voting bloc in the world’s largest democracy. The main opposition Congress Party has promised to write
off farm loans throughout the country.
To match it, BJP said it would invest $359 billion in rural development and offer farmers 6,000 rupees per year in income support.
The infrastructure promise ties in with estimates reflected in the 2017-18 Economic Survey document by former adviser and economist Arvind Subramanian, who pegged the needed investments at $4.5 trillion till 2040. BJP’s figure is roughly one fourth of this requirement. In comparison, the government has set aside
$57 billion for spending on roads, railways and airports in the year ending March 2020.
The manifesto lists banking reforms and lower inflation as achievements that can help raise funds for building infrastructure, but gives no details of how the party will ensure funds will be raised.
“The essence of the manifesto is to deplete poverty to single digits in next five years and then eventually eliminate it,” said Finance Minister
Arun Jaitley.