Private sector to invest $500 billion in infra: Pranab Mukherjee
The private sector is likely to contribute nearly half of the estimated $1 trillion investment in infrastructure sector during the 12th five-year plan period (fiscal 2012-17), Finance Minister Pranab Mukherjee said on Monday.
The private sector is likely to contribute nearly half of the estimated $1 trillion investment in infrastructure sector during the 12th five-year plan period (fiscal 2012-17), Finance Minister Pranab Mukherjee said on Monday.
"Nearly 30 percent of the total spending on infrastructure sector during the first three years of the 11th plan period has come from private sources. As we go into the next plan period, we expect this proportion to go up to nearly 50 percent," Mukherjee said at a conference organised by the Confederation of Indian Industry and the US-India Business Council here.
During the 11th plan period (2007-08 to 2011-12), $514 billion investment is estimated in infrastructure sector. It is estimated to increase to $1 trillion during 12th plan period (2012-13 to 2016-17).
"In order to sustain the high growth in infrastructure spending, it is essential to source more and more funds from the private sector," said Mukherjee, adding the government was taking initiatives to make the regulatory framework investment friendly to attract more overseas funds.
"The Indian government has steadfastly worked towards making foreign direct investment (FDI) regime progressive and liberal."
He pointed out that 100 percent FDI is allowed through automatic route in most sectors in India.
The finance minister asked US companies to increase investment in Indian infrastructure and technology sectors.