Infrastructure Finance
Revival in Sight
The Indian economy is going through a period of decelerated growth. The GDP growth rate slid to 4.5 per cent in the second quarter of 2019-20, the lowest since 2013-14. This is also the sixth […]
Strategic Moves: Government betting on disinvestment and asset monetisation for revenue mobilization
As per the Economic Survey 2018-19, India needs to spend 7-8 per cent of its GDP on infrastructure annually that translates into an annual infrastructure investment of $200 billion. However, the country’s annual infrastructure spend […]
Banking Conundrum: Infrastructure credit uptick amidst slow stressed assets resolution
The infrastructure sector has started receiving due attention from commercial banks once again after a prolonged period of credit deceleration. Although lending from this important source is not at the required level, it is nevertheless […]
Missing the Mark
For a number of years now, banks have had limited headroom to extend fresh credit to the infrastructure sector, and this has pointed towards the need for a well-developed bond market. A common source of […]
Cautious but Positive: Private equity investors’ confidence soaring
For the past couple of years, foreign investors have perceived India as a rapidly growing market replete with opportunities. From a wait-and-watch mode to making controlled investments, private equity (PE) investors are upping the ante […]
In a Trough: Liquidity freeze plaguing NBFC industry
Non-banking financial companies (NBFCs), which play a prominent role in India’s infrastructure financing, are passing through a difficult phase. The Infrastructure Leasing & Financial Services (IL&FS) crisis in 2018 and the subsequent defaults by a […]
Emerging Asset Class: Regulatory moves favour uptake of InvITs
After a slow start, infrastructure investment trusts (InvITs) are finally making inroads in the infrastructure financing space. The past 12-18 months have been quite eventful in this regard. A slew of regulatory measures have been […]
Funding Uptick: Progress across most infrastructure financing avenues
The Indian economy has exhibited resilient growth and a steady performance in the past two years. GDP grew at 6.7 per cent in 2017-18, recovering from the jolt caused by demonetisation and the introduction of […]
Reality Check
Even as the government has been making consistent efforts at enhancing infrastructural capacity, bank lending to the sector has shown sharp contraction over the past two years. The increasing level of non-performing assets (NPAs) has […]
Slow Take Off: Emerging funding sources continue to face challenges
The infrastructure sector in India is at a critical juncture today. Faced with mounting challenges of arranging funds for project development, there is a risk of project development being affected in case of financing failures. […]
A Mixed Bag: Critical assessment of foreign funding in the infrastructure sector
Over the past couple of years, foreign funding in the form of multilateral aid, foreign direct investment (FDI), foreign portfolio investment (FPI) and external commercial borrowing (ECB) has become a critical source of infrastructure financing. […]
Strengthening the Bond: Significant potential yet underexplored
The Indian bond market has remained an undertapped avenue for infrastructure financing. The lack of liquidity for lower-rated corporate bonds, a narrow investor base and onerous exit routes inherent in corporate papers have stunted the […]
Rising Confidence: PE investments in infrastructure reaching an all-time high
The record level of private equity (PE) investments in 2017-18, as compared to the past five years, has continued in 2018-19 so far. Abuzz with activity, the ongoing fiscal year witnessed a number of landmark […]
Constraining Factors: Wait-and-watch stance of long-term investors
Well-developed infrastructure is critical for a developing economy. It facilitates steady flow of private and foreign investments, thereby augmenting the capital base of the economy. India needs to spend an estimated Rs 50 trillion over […]
Taking Centre Stage
India’s growth story has been an impressive one, withstanding global headwinds witnessed in recent times. Though there has been some deceleration in the past year, the country’s performance is still better than that of many […]
New Initiatives: Some progress in infrastructure financing despite slow takeoff
Given the lack of adequate financing for infrastructure, alternative sources are being looked at to reduce dependence on banks, which have slowed lending to the infrastructure sector owing to a number of issues. During the […]
In the Doldrums: Burgeoning stress continues to constrain banks’ lending capacity
Asset quality is one of the chief concerns of the Indian banking sector at present. The high level of stress on the banks’ books is not only impacting their profitability but is also a looming […]
