Kai Business School, Meadows, Faridabad.
There is no doubt that India is emerging as fast developing economy on the map of the world. To speed up the economic growth, more and more capital investment is required. Finance for investment can come predominantly from two sources, domestic savings and financial transfers from abraad. India being a developing country experienced perpetual shortfall ofsavings to meet the investment requirements. After the liberalization of Indian economy we are looking forward at International Investors as the source of capital formation.
Provision of quality and efficient infrastructure services is essential to realize the full potential of the growth of economy. This paper will help the reader to know about the current status of infrastructure in India and the investment required in this sector for future. An investment of Rs.14,50,000crare or about US$320 billion would be required in the infrastructure sector during the Eleventh Five Year Plan (2007–2012). Investment requirements by 2012 estimated by the Committee on Infrastructure, headed by the Prime Minister, in some of the key sectors are: Rs.2,20,000 crare for modernization and up gradation of highways; Rs 4O,OOO crore for civil aviation; Rs.50,000 crare for ports; and Rs.3,OO,OOO crare for the Railways. These investments are to be achieved through a combination of public investment, public-private-partnerships (PPPs) and exclusive private investments, wherever feasible. Now we can see foreign investors as major source of capital investment (Direct investment + Portfolio investment). So infrastructure sector in future may be the biggest sector for the foreign capital investments.
