New Delhi: Poor infrastructure continues to be one of the most significant threats to India’s growth in the immediate future. Experts say India’s GDP can slow down by 2% if the country does not invest $500 billion in roads, power, ports, water, telecom in the coming 5 years. But with the economic slowdown making liquidity scarce where would this money come from?
“We should think of a sovereign wealth fund which could even think of co-investing with the infrastructure funds so that confidence comes that yes its possible,” says Gunit Chadha, MD and CEO of Deutsche Bank.
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Reducing the current underwriting period of one month for infrastructure related ADRs and GDRs could make banks more conducive towards funding infrastructure projects. But others think efficient management of funds could go a long way too.
“India may or may not need a fiscal stimulus package. What it certainly needs is that the money which has been allocated is utilized in a manner which is meaningful enough to get infrastructure and maintain growth,” says N K Singh, the former member of planning commission.
Some experts feel investment in viable infrastructure projects, by developing as well as developed countries, could be the catalyst that would help build a momentum towards global economic recovery.