What you need to know about infrastructure investment funds
Posted On August 5, 2021
The latest investment opportunities for infrastructure in India are growing at a rapid pace, according to the Investment Funds Association of India (IFI).
The IFI, which represents over 40 fund companies, has released an annual report, which shows that the number of infrastructure projects under development in India has risen by almost 40% from 2016 to 2019, reaching nearly 5,000 projects in the last six months of 2017 alone.
The IFIA has put together this report to highlight the current state of infrastructure investment in India.
In a country where most infrastructure is yet to be completed, the report points to a growing demand for capital, and an increasing need for infrastructure investment.
This is reflected in the rapid growth in the number and scope of infrastructure investments being made in India, as the country has become one of the fastest growing economies in the world.
The growth in infrastructure projects in India is the result of the growing global demand for infrastructure and is reflected by the rapid increase in the numbers of projects being undertaken by various government departments.
According to the IFAI, over the last three years, there have been over 20 projects of construction and development undertaken in India and over 2,000 infrastructure projects completed.
The IFA’s annual report says that the growth in projects is due to the following factors:The first is the growing international demand for construction and maintenance of infrastructure in the country, which has been met with a corresponding increase in investment by all sectors.
This demand has been partially met by the government’s initiatives and measures, such as the implementation of the MOU with the National Infrastructure Corporation (NIC), and the implementation and maintenance programmes of the State-owned railways.
The second factor is the growth of domestic infrastructure, which is reflected through the fact that nearly 20% of the country’s population is dependent on the services provided by domestic infrastructure.
The report says there is a clear need for greater investment in infrastructure in order to ensure the country can meet the demands of its people and businesses.
The third factor is that in order for India to maintain its position as the largest economy in the region, the government needs to ensure that it can continue to maintain a low debt burden, a key factor for long-term economic growth.
Accordingly, India needs to strengthen its infrastructure sector to ensure this.