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Infra investment may rise to 10 per cent of GDP

Infra investment may rise to 10 per cent of GDP

In 2011-12, infrastructure investment as a share of GDP was approximately 8 per cent and it is expected to rise to 10 per cent of GDP over the next five years, experts opined.

India is set to draw up a trillion-dollar road-map in the new Plan to create world-class infrastructure. This is an increase in spending of nearly 150 per cent over the 11th Plan. A significant share of the financing in the 11th Plan has been provided by banks.

According to experts, NBFCs can play a complementary role to banks as providers of infrastructure finance. The absolute quantum as a percentage of funds deployed will reduce as infrastructure financing is nearing 15 per cent of total bank credit and there is limited head-room for further loan growth in this category.

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