Ojaank IAS Academy

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OJAANK IAS ACADEMY

Public Investment: Sanjivani in view of the current financial conditions

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Recently in a business conference, Finance Minister Nirmala Sitharaman while addressing the traders and investors said that you are Hanuman but have forgotten your power. You will have to take over the reins of the country’s economy once again. He then enumerated the most recent figures under which he created Ease of Doing Business. For example, reducing the corporate tax from 30 percent to 22 percent and reducing the manufacturing tax from 22 percent to 15 percent.
But what does the private investor see?… Profit. Business is a profitable deal for him. Therefore, in the present era, public investment is a very important mechanism, which the government should improve. Let us now understand what is investment?
An investment is a commodity, asset, product or any other asset that is bought or used to generate income in the future. An investment can be any type of purchase such as a stock, property, business, etc. Most of the assets invested are not consumed but are kept to build future wealth.
Overall, the general meaning of investment or investment is such expenditure which brings about an increase in production capacity. The investment made by the government is called public investment. Government invests mostly in social sectors like sanitation, health, education etc. Apart from this, one of their main tasks is infrastructure construction.
In fact, infrastructure creation is an investment on which the foundation of all productive activities rests. Now let us understand what is infrastructure building?
The government has also worked on this leak. For example, special economic zones have been created. Where the economy is operated on a cluster based approach. Apart from this, the government is now also working on the concept of Industry Park.

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