Insfrastructure Sector- Gap, Expectations , Problems and Solution - Seeker's Thoughts

Recent Posts

Seeker's Thoughts

For Clearing the Blur Spot.

Popular Posts

Insfrastructure Sector- Gap, Expectations , Problems and Solution

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.

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 fiancĂ© 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.