Infrastructure projects require long tenure financing that can only be provided by debt funds. For long, the biggest problem with private sector participation in infrastructure projects in India has been the lack of suitable debt capital. Our bond markets were insignificant and clearly not deep enough to attract patient capital, such as from pension and insurance funds. While asset-liability mismatch held back the banks from going far into infrastructure lending, the huge NPAs of public sector banks (the closest equivalent to development financial institutions), caused a virtual dry down in private sector funding. As a consequence, in the last five years the government has hardly launched any PPP projects. Almost all the infrastructure projects today are essentially government funded – under schemes like EPC or HAM. While this has helped the speed of execution, it is not sustainable in the long run.
At present, India has a BBB- rating from S&P Global Ratings for India’s creditworthiness, which is neither too good nor discouraging. However, the recently announced inclusion of India’s sovereign bonds into the important JP Morgan’s Government Bond IndexEmerging Markets (GBI-EM) index is a significant positive recognition of India’s economic credibility and thereby good news for its overall sovereign rating. It could also be the beginning of a new renaissance in private sector investment in infrastructure. It will also assist the government in its various fiscal measures to influence the economy.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Is Leadership Without Hierarchies Possible?
LEADERSHIP IN THE current era is more challenging than ever before.
The Rise and Evolution of Coffee Culture in India
AS A BANGALORE native, South Indian filter ‘Kaapi’ has always been a significant part of our tradition.
The Daily Ground Goes Desi
Success in Tier-2 and Tier-3 cities hinges on several key factors, with one of the most important being the ability to offer high-quality products at an accessible price point
Cracking The Indian Code
TARUN JAIN, CEO of Tim Hortons India believes in creating an experience at cafes by blending global quality, local flavours and affordability
Making Coffee the New Chai in India
Affordable, great-tasting coffee made fast-abCoffee is reshaping how India drinks coffee
Scripting A New Era Of Coffee In India
From a bootstrapped startup to international expansion, NOTHING BEFORE COFFEE is brewing its way to the top by challenging the giants of the coffee industry with innovation, personalisation, and sustainability
"Driven By A Younger Demographic, Coffee Culture Is On The Upswing"
SUNIL D'SOUZA, Managing Director and CEO of Tata Consumer Products, discusses the company's strategic growth in India's booming coffee market, focusing on premiumisation, innovation, and expanding consumer experiences both at home and in cafés, in this exclusive conversation with BW Businessworld's Tarannum Manjul
Fresh Brew, Big Ambitions
From startups to stores, Beanly's Samayesh Khanna and Rahul Jain elevate India's coffee culture by making freshly brewed coffee a daily delight
"On Track To Become India's Top Café Chain"
In an exclusive interview, RAJAT AGRAWAL, CEO of Barista Coffee, shared insights on the company's current market position, expansion strategies, and its response to growing competition
"Ensuring A Seamless Coffee Experience Outside The Cafe Is The Next Big Thing To Watch Out For"
In an exclusive conversation with BW Businessworld's Resham Suhail, Third Wave Coffee CEO RAJAT LUTHRA and its Co-founder AYUSH BATHWAL delve on how they are navigating the competitive landscape, going beyond retail and tapping changing consumer preferences