Budget 2011: FM switches on lights for infrastructure

The biggest gainer in the Budget is the infrastructure sector, critical to boost growth to double-digit levels. The government has money, so it’s hiked spending sharply by more than 23% to Rs 2,14,000 crore for the sector.

Overseas investors keen to cash in on the growth story will get a chance to do so: FIIs can now invest up to $25 billion each year in five-year tradable infrastructure bonds, up from a measly $5 billion.

Domestic investors can buy tax-free bonds worth another Rs 30,000 crore to boost crucial infrastructure like railways, ports, highways and housing.

Public-private partnerships have started working well, so expect to see many more in the year to come. Funds will come, now execute the projects.