Infrastructure Financing in India: Trends, Challenges, and Way Forward

Governments are investing in infrastructure to promote sustainable and inclusive growth. India's National Infrastructure Plan (NIP) aims to increase infrastructure spending to regain its position as the fastest-growing large economy. The book discusses infrastructure financing, including green financing, and highlights the importance of timely action given the economic impact of COVID-19.

Format: Hardback
Length: 448 pages
Publication date: 30 September 2023
Publisher: Oxford University Press

Governments across the globe are increasingly prioritizing infrastructure spending as a means to foster sustainable and inclusive growth. India is no exception to this trend. Recognizing the need to invest in infrastructure to reclaim its position as the fastest-growing large economy in the world, India has committed to increasing its infrastructure spending. During the Eleventh Plan period (2008-12), India allocated approximately 7.2% of its GDP to infrastructure development. However, recent figures indicate a decline in this investment, with the current allocation hovering around 5%.

The backdrop of this book is the ambitious National Infrastructure Plan (NIP), which was finalized in April 2020. The NIP is a comprehensive roadmap for infrastructure development in India, aimed at boosting economic growth, creating jobs, and improving the quality of life for citizens. Given the critical role of infrastructure investment in driving faster and inclusive growth, it is timely that the NIP is implemented now, particularly in the context of the Indian economy's contraction to 7.3% in the financial year 2020-21.

This book delves into various aspects of infrastructure financing, with a significant focus on green financing of infrastructure. Green financing refers to the use of financial mechanisms to support projects that prioritize environmental sustainability, such as renewable energy, energy efficiency, and waste management. The book discusses the challenges and opportunities associated with green financing, as well as the policies and initiatives that have been put in place to promote it.

Furthermore, the book explores the role of private sector participation in infrastructure development, including public-private partnerships (PPPs) and private finance initiatives (PFIs). It discusses the benefits and drawbacks of these approaches, as well as the strategies that governments and private sector players can employ to ensure successful infrastructure projects.

In conclusion, this book provides a comprehensive and timely examination of infrastructure financing in India. It highlights the need for increased infrastructure spending, the importance of green financing, and the role of private sector participation in infrastructure development. The book is a valuable resource for policymakers, investors, and stakeholders interested in promoting sustainable and inclusive growth in India.

Dimension: 216 x 140 (mm)
ISBN-13: 9780198884934