Third world countries most of the time do not want to understand the importance of infrastructure development. Take the case of India. Indian economy is now rising and shining and all the time in the media, we are praising the continuous high economic growth of India. However, millions of people in India do not have access to electricity, safe drinking water, transports, education, medicine etc.
So, Indian government needs to focus on infrastructure development if India wants to sustain the high economic growth. However, since India has neglected this field until now, the infrastructure development is going to be an expensive affair for the country. Reuters reported:
“India needs to reforms its pension and insurance sectors and develop a corporate debt market to raise long term funds of $50 billion annually from domestic markets to improve its rickety infrastructure, Finance Minister Palaniappan Chidambaram said on Saturday.
Asia's fourth largest economy must also explore ways of attracting foreign private equity in long-gestation projects like power plants, ports, roads, airports, he told a business conference here.
India faces a shortage of long term debt instruments that could raise funds for infrastructure projects.”
Well, $50 billion/ year is literally a fortune. Still, Indian government needs to act decisively from now or else it may be too late.
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