Infrastructure is a crucial driver of economic growth. Give an account of the key issues in infrastructure financing in India. Also discuss the steps taken by government to address the concerned issues?
Approach of the Answer
- Introduction: Contextual introduction.
- Body: Give an account of the key issues in infrastructure financing in India along with steps government’s initiative to address these issues.
- Conclusion: Conclude by appropriate way forward.
Answer
- The infrastructure sector is a key driver of the Indian economy, and is critical for driving India's overall development, offering enhanced growth prospects to strengthen India's global competitiveness.
- However, infrastructure development typically involves high levels of upfront financial investment, given the heavy capital expenditure required during the construction stage. Infrastructure projects carry an array of risks which can lead to cost overruns and reduce financial returns.
- Financing ....
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