8th September 2010
For the Indian economy to really get on the fast track the country needs huge investments and quick execution in the infrastructure sector. Infrastructure means sectors or segments of economy which are basic to the development of economy and facilitate commerce e.g power, telecommunication, roads, railways etc.
The nation's infrastructure has been improving slowly but steadily over recent years, with investors from all around the globe keen to participate in India's growth. More and more foreign and domestic investments are flowing into this area of economy.
Here are some Key points to watch in the infrastructure segment:
1-By the end of year 2012, an investment of about $500 billion will be made in the Indian infrastructure segment, mainly in power, telecommunication, roads, railways and oil pipelines,
2- According to Goldman Sachs India will be spending more than $1 trillion on infra segment from 2010 to 2019, with roads requiring $427 billion, power $288 billion and railways $281 billion.
3- By the end of 2008-2012 five year plan Infrastructure investment will be increased from the present 7.5% of GDP to about 10% of the GDP. This is still lower than most other developed nations and developing countries in the world.
4- Private investment in the infra segment will be up from 25% to 36% , or $186 billion, to total infrastructure investment by the end of the 2008-2012 five-year plan.
5- The government will issue tax-free infrastructure bonds with a minimum tenure of 10 years. This will help India raise about $ 7 billion in the financial year 2010-2011 and this number could further rise in the next fiscal year according to government estimates. |
