Wednesday, September 8, 2010

Infrastructure Sector: 5 Key Points to Remember

India's infrastructure has been improving slowly but steadily over recent years, with foreign investors increasingly keen to invest in the sector. Here are some key facts about India's infrastructure sector:

1- India, Asia's third-largest economy, expects to invest about $500 billion in infrastructure, mainly in power, telecommunication, roads, railways and oil pipelines, in the five years ending March 2012.

2- India will need to spend more than $1 trillion on infrastructure from 2010 to 2019, with roads requiring $427 billion, power $288 billion and railways $281 billion, according to Goldman Sachs.

3- Infrastructure investment is relatively low compared with some countries in Asia. Around 7.5% of GDP is invested in infrastructure, with plans to increase that to about 10% at the end of the 2008-2012 five-year plan.

4- Private investment will likely contribute 36% , or $186 billion, to total infrastructure investment by the end of the 2008-2012 five-year plan, up from 25% for the 2002-2007 period.

5- India will issue tax-free infrastructure bonds with a minimum tenure of 10 years, which will have the potential to raise about $6.5 billion in fiscal year 2010/11, according to government estimates, and the number could rise in 2011/12.

Source: http://www.moneycontrol.com/news/

Thank you,
Minita Aiya
Client Service Associate
DENIP Consultants Pvt. Ltd.

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