We need to improve our infrastructure, and if someone asked, by when, the obvious answer will be yesterday! According to a study by S&P Global Ratings, the countryÂ´s poor infrastructure is the biggest hurdle to the governmentÂ´s Â´Make in IndiaÂ´ programme, and they went on to add that the infrastructure deficit is costing the nation up to 5 per cent of our GDP.
After liberalisation, the governmentÂ´s primary focus was on reducing the fiscal deficit to restore macroeconomic stability, reforming trade and exchange rate policies and liberalising foreign investment policy. Infrastructure was never a growth constraint in the short term, considering the low utilisation of the existing infrastructure then.
Clearly, the government had saved the best for the last, with a flurry of policy decisions at the year end. Infrastructure is clearly in for better times in 2016. The year 2015 was generally a positive one for the economy, although bumpy.
A slew of measures to infuse the much-needed cash-flow into the infrastructure sector have been introduced to push growth. And Rs 8 lakh crore of equity is likely to find its way soon in the sector enriching the fund pool. However, missing links like deepening the bond market in the country