India Needs to Raise Infra Investments - The New Indian Express

India Needs to Raise Infra Investments

Published: 05th May 2014 06:00 AM

Last Updated: 05th May 2014 01:01 AM

Reiterating the need for increasing investments into the infrastructure, Union Finance Minister P Chidambaram said that the improving signs in economy should be utilised to revive growth.

Speaking at the first business session of the 47th Annual meeting of Asian Developing Board of Governors in Astana (Kazakhstan), Chidambaram said that it was imperative that India to increase investments in infrastructure. For the 12th five year plan period (2012-17) India’s infrastructure fund requirements are estimated at $1 trillion.

“Policies to revive growth in most emerging markets, including India, will have to be rooted in increasing investments, particularly in infrastructure. As most emerging markets are resource constrained, it would be necessary to have recourse to foreign savings for investment,” the finance minister was quoted by agencies.

He also emphasised on the need to increase resources of the ADB for lending.  “The world economy is a little better placed now than a year ago. Global recovery appears to have strengthened in the recent months. However, we are yet to reach a stage where we can make a medium term forecast of a moderate growth,” he reportedly said.

Indian investments have seen a slump mostly due to general slowdown in the economy as well as the ongoing Lok Sabha elections.

Chidambaram said that investments through FDI was the best option. The government relaxed FDI in many sectors to increase investment inflows. He also highlighted that the dependence on exports alone would affect economies. He said that there should be a focus on domestic sources of growth as well.

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