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Infrastructure Financing in India—Trends, Challenges and Way Forward

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Abstract

This paper highlights the infrastructure financing history of India, how this has changed over the years, and the factors responsible for it. The actual infrastructure financing experience has been compared with the financing requirements, to lead to a discussion on the need for deepening and diversifying sources of infrastructure financing and the challenges and issues that need to be addressed. Since the actual infrastructure investments in India are way below the required investments, the paper draws lessons from other countries, to identify the instruments and mechanisms which can be adopted to mobilize increased infrastructure finance. The paper also highlights the lessons that India holds for other countries on infrastructure financing.

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Notes

  1. 1.

    Boston Consulting Group. 2013. Bridging the Gap—Meeting the Infrastructure Challenge with Public-Private Partnerships.

  2. 2.

    Mid-Term Appraisal of Eleventh Five Year Plan (2007–12), Planning Commission, Government of India.

  3. 3.

    Investment in Infrastructure during the Eleventh Five Year Plan, Planning Commission, Government of India, January 2011.

  4. 4.

    NITI Aayog Appraisal Document of Twelfth Five Year Plan (2012–17), Government of India.

  5. 5.

    Report of the Working Sub-Group on Infrastructure: Infrastructure funding requirements and its sources over the implementation period of the Twelfth Five Year Plan (2012–17), Government of India.

  6. 6.

    Union Budget Speech 2018–19, Ministry of Finance, Government of India.

  7. 7.

    Report of the Working Sub-Group on Infrastructure: Infrastructure Funding requirements and its sources over the implementation period of the Twelfth Five Year Plan (2012–17), Government of India.

  8. 8.

    Data on Sectoral deployment of Bank Credit, March 2018, Reserve Bank of India.

  9. 9.

    Consultation paper for Designing a Framework for Enhanced Market Borrowings by Large Corporates, Securities & Exchange Board of India (SEBI), July 2018.

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Correspondence to Kumar V. Pratap .

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© 2019 Indian Council for Research on International Economic Relations (ICRIER)

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Pratap, K.V., Sethi, M. (2019). Infrastructure Financing in India—Trends, Challenges and Way Forward. In: Kathuria, R., Kukreja, P. (eds) 20 Years of G20. Springer, Singapore. https://doi.org/10.1007/978-981-13-8106-5_10

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