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Introduction- Infrastructure sector in India is a key driver for economic growth and highly responsible for overall development. Sectors which need huge money are--- water , sanitation , rural infrastructure, environment protection , urban development and logistics. Download Our App
Introduction- Infrastructure sector in India is a key driver for economic growth and highly responsible for overall development. Sectors which need huge money are--- water , sanitation , rural infrastructure, environment protection , urban development and logistics. Download Our App
What is going on? - There is a huge need for
investment and Indian government has been finding ways to finance the
infrastructure sector.
According to the Global
Infrastructure Outlook- the infrastructure sector needs trillions of dollar
investment as well as major portion is needed for road construction in Indian
context. According to recent economic survey also there remains a
infrastructure gap.
India has
expectations of- 4 to 40 billion dollar up to 2020.
What can be
done?
·
Indian Banks are going through severe stress due to NPA (Non-Performing
Assets) and willful default. First single bank can't fulfill the need for
investment, and second is Indian banks are shying away from providing fiancé in
Infrastructure sectors. So there is need of mobilizing finance for
infrastructure, innovation and collaboration.
·
There is need for developing countries to adopt the multilateral
approach where big banks like AIIB, ADB, NDB and World Bank together can fill
the gap in funding.
·
Only International bank can help.
·
Government can create a new body specialized, or spy for
Infrastructure lending. as banks already burnt their finger.
AIIB meet in Mumbai and
Role in Indian Growth- China has largest share and India is second largest shareholder.
They had achieved previous target they wanted. India is big beneficiary from
AIIB as 1.2 billion dollar India received for 9 projects. Private sectors will
also improve.
Other Agencies and
their role-
World Bank, ADB, NDB and
AIIB are also there, and their capacity is limited. All agencies join hands
then cost will go down and money will flow more.
Maharashtra already
asked for loan from Japan.
Bihar - gets huge loan
from World Bank.
Why doesn't India
follow the China Model?
Asian economy --- China
has grew due to singular party system and being communist in Nature, India can
never accept Chinese model as we have parliamentary democracy where everyone
has to be involved in decision.
We need to find better
ways to work according to our model.
