Private Participation in Infrastructure

Abstract

It is generally recognised that lack of infrastructure is one of the major constraints on India's ability to sustain a high rate of growth in GDP, which is necessary to make a significant difference to quality of life and elimination of poverty over the next ten years. The Eleventh Five Year Plan has set an ambitious target of increasing total investment in infrastructure from around 5 per cent of GDP in the base year of the Plan (2006-07) to 9 per cent by the terminal year (2011-2012). In absolute terms, this implies an increase from a level of Rs. 8,87,794 crore ($222 billion) in the Tenth Plan to an investment requirement of Rs. 2,056,150 crore ($514 billion) during the Eleventh Plan. As compared to 4.5 per cent in 2003-04, the investment in infrastructure as a percentage of GDP has risen to about 6 per cent in 2007-08.