Hyderabad, July 18 (IANS) Investments in infrastructure, particularly the roads sector, can boost the economy by 1.8 percent a year, said J.P. Nayak of Larsen and Toubro Limited here Saturday.
Hailing the recent initiatives of the government to boost infrastructure, he said China laid a strong foundation for its enviable growth by according top priority to infrastructure while the US went on a building spree to come out of the Great Depression.

Nayak, wholetime director and president (operations) of L&T, was addressing a seminar on ‘infrastructure development with special emphasis on roads’, organised by the Confederation of Indian Industry (CII) here Saturday.

“Realising the significance of the infrastructure sector that has emerged as the driving force for India’s growth, the central government has announced several concessions to attract investments and to promote pro-active private sector participation,” he said.

He called for exploring new ways and means to create an atmosphere where the investor benefits with faster returns.

Steps like 100 percent foreign direct investment (FDI) and the 10-year full income tax exemption show the government’s highest priority to infrastructure, he said.

“The public-private partnership (PPP) mode in national highways development programme and other national projects marks a watershed moment in the country,” he said.