New Delhi, Dec 16 (IANS): Industry body PHD Chamber of Commerce and Industry on Tuesday said that increased spending on infrastructure will rejuvenate the aggregate demand.

In its pre-Budget recommendations for the Union Budget 2021-22, the industry body said that growth of infrastructure is the key ingredient to realise the vision of 'Atmanirbhar Bharat'.

According to Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry, at this juncture, the Centre should consider raising investment funding for the National Infrastructure Pipeline (NIP) through borrowings from overseas markets by issuance of overseas bonds through an SPV that could act as a mega Development Financial Institution (DFI).

Besides, he said that DFI could initially finance public sector infrastructure investments, and, as the economy picks up steam, could also finance the private sector infrastructure projects.

In the past, governments around the world have often used DFIs to fund industrial and infrastructure investments.

Financial, as well as technical support extended by the DFI, would also help in efficient and timely infrastructural development in the country, Aggarwal said.

Additionally, he said strengthening the MSMEs sector must also be on priority in the forthcoming budget.

The value chains of MSMEs should be enhanced, making them more structurally competent to add to their efficiency, increased share in the manufacturing sector, employment generation and the country's overall economic growth, he said.