Need for Infrastructure Financing in India
Need for Infrastructure Financing in India
Prasanna V. Salian, Divya Satija
Infrastructure financing is sine quo non for promoting and sustaining rapid economic growth. India’s investments in infrastructure have been growing over the years, from Rs. 24 lakh crores between 2008 and 2012, to Rs. 56.2 lakh crore between 2013 and 2019. During this period, around 70 per cent of the infrastructure financing was sourced from the public sector and remaining was funded by the private sector – a sub-optimal mix for sustaining infrastructure financing in India.
India aims to achieve the target of becoming a $5 trillion economy by 2025 and infrastructure development has an important role to play. As per the National Infrastructure Pipeline (NIP), the total capital expenditure in infrastructure sectors in India is projected at around Rs. 111 lakh crore ($1.5 trillion) between 2020 and 2025.