An Exploratory Study on Infrastructure Financing in India

An Exploratory Study on Infrastructure Financing in India Infrastructure is one of crucial pillars of productivity in any economy. It not only attracts foreign direct investment, but also affects economic growth and reduces poverty In India. In this paper author has explained resource constraint is the critical factor for infrastructure deficit in India. This paper identifies stable exchange rate, mild inflation, clarity of taxation rules, fiscal discipline& sustainability of economic policy create investment climate in India. According to this paper, public private partnership model is the best model as infrastructure is concerned but effectiveness of this depends upon maturity of domestic bond market& infrastructure pricing policy. In addition, this paper discovers inadequate allocation of fuel to the power stations, delay in environment clearances, issues in the land acquisition, absence of credible dispute resolution mechanism are the technical barriers of investment in infrastructure. This paper suggests setting up an infrastructure development fund for those infrastructure sectors in which private participation is negligible. In addition, company act 2013 should be amended for more participation of corporate sector for infrastructure development.