Infra Conclave
Must spend 8-10% of GDP on infra to sustain high growth, says banking secy
This story was originally published at 14:05 IST on 12 September 2024
Register to read our real-time news.Informist, Thursday, Sep 12, 2024
MUMBAI – To sustain a high single-digit growth, India needs to spend 8-10% of GDP on infrastructure, M. Nagaraju, secretary, department of financial services, finance ministry, said today at the NaBFID Infrastructure Conclave 2024.
"Achieving this will require more than budgetary outlays," Nagaraju said. Enumerating the need for the private sector to increase its participation, he said the government was ready to build the required ecosystem for the private sector to increase the investment in the infrastructure sector.
Stating the need to solve the issue of financing, he said, "We need a holistic approach to solve financing constraints for the infrastructure sector...as the government works on fiscal prudence, the dependency on household surplus will come down, creating a robust pool of funds available to support the financing requirements of the corporate sector."
He said there was a need to have a long-term plan in place for infrastructure development. Developing cooperation between the government and the private sector is the key, and "NaBFID can play a role here through transaction advisory services," Nagaraju said.
NabFID could create a pool of assets available for financing by banks and other long-term institutional investors, he said. "NaBFID can collaborate with MDBs (multilateral development banks), particularly those focused on grid funds to provide blended financing structures in the country. Additionally, exploring pooled structures for principal finance could aid in raising resources for urban infrastructure," Nagaraju said. End
Reported by Sourabh Kumar
Edited by Aditya Sakorkar
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
