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Foreign Direct Investment Opportunities in Infrastructure Development: A Study on India
Abstract
India's rising growth trajectory requires rapidly expanding infrastructure facilities to support it. The availability of efficient infrastructure services is an important determinant of the pace of market development and output growth. Access to affordable infrastructure services for consumption purposes serves to improve household welfare, particularly among the poor. The potential contribution of infrastructure to economic growth and poverty reduction has not been fully realized, and existing infrastructure stock and services fall far short of the requirements. The Government recognises the fact that domestic resources alone may not be adequate to sustain the required expansion in infrastructure, and hence it has followed a strategy to create incentives for Foreign Direct Investment in infrastructure sector. This study examines the current state of infrastructure in emerging India, use of FDI is infrastructure sector and policy measures to be taken up to speed up infrastructure growth in India.
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