Infrastructure Financing in India- a Review

Abstract

Infrastructure is a critical determinant of investments, manufacturing depth, logistics, productivity, inclusive development, national integration and poverty reduction. Insufficient capacity across infrastructure sectors leads to a widening infrastructure gap, resulting in lower productivity, higher transport and logistics costs, reduced competitiveness, and slower growth. Infrastructure also plays a great role in accelerating economic development of a country. Infrastructure is the capital of an economy. It is a component of capital stock that promotes development by linking the production points with input supplies including lab our through transport and communication. Infrastructure helps in reducing poverty, promotes development and facilitates functioning of economy.