A study by Industry body Assocham raised concerns about the dwindling share of capital expenditure in the total spending of government.
It said of the total expenditure of Rs 14.90 lakh crore budgeted for the current financial year, only Rs 2.04 lakh crore would be spent on building the capital assets.
The study suggested government to extend Public-Private-Partnership (PPP) model to projects in sectors like education and healthcare. Currently, the PPP model is popular in physical infrastructure sectors like roads, ports and railways.
The study said that the only option left is to go in aggressively for the PPP model of development for which a greater clarity is required in terms of assuring transparency, reasonable return to investors and a fair deal to the users of infrastructure like highways, airports.
It said to revive the country's economy, there is an urgent need to enhance basic infrastructure as otherwise manufacturing, services and the social sectors could suffer. The government at present needs to focus on PPP capacity building, it added.