What is the significance of putting various economic sectors in the Harmonized Master List of Infrastructure Sub-sectors? Discuss taking examples of recent sectors placed in this list.
Economic sectors in the Harmonized Master List of Infrastructure Sub-sectors will get financial support from banks and other financial institutions easily when compared with other sectors.
Inclusion Harmonized Master List of Infrastructure Sub-sectors would encourage private investment which will contribute to the economy.
Recently, the government granted infrastructure status to the logistics sector, which includes industrial parks, warehouses, cold storages and transportation. Coming under the infrastructure category. In 2016, the government had also included sports in infrastructure sector.
It will help the logistics sector get credit at competitive rates and on a long-term basis with enhanced limits. It will also give access to larger amounts of funds as external commercial borrowings (ECB). High logistics cost reduces the competitiveness of Indian goods both in domestic and export markets. The development of logistics would give a boost to both domestic and external demand, thereby encouraging manufacturing and ‘job creation’. This will in turn be instrumental in improving country’s GDP.
Recently, sports infrastructure included under the harmonized master list of infrastructure sub-sectors. With this, sports sector will become eligible for obtaining long term financial support from banks and other financial institutions on same principle available to other infrastructure projects.