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3) Discuss the importance of private sector participation in resource mobilization for India’s infrastructure needs. Also, discuss various measures undertaken by the government to attract private investment.(250 words)

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

3) Discuss the importance of private sector participation in resource mobilization for India’s infrastructure needs. Also, discuss various measures undertaken by the government to attract private investment.(250 words)

Reference

Why this question

India has huge infrastructure needs. Approximately 200 billion rupees are required to be invested in infrastructure every year. However, raising investment is not an easy task and government has tried to rope in private investment for this purpose. The issue is related to GS 3 syllabus under the following heading-

Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Directive word

Discuss- we have to write at length about the key demand of the question- importance of private sector participation in resource mobilization for India’s infrastructure needs and measures undertaken by the government to attract private investment.

Structure of the answer

Introduction- mention the corpus of investment required and investment raised, vis a vi’s infrastructure needs of the country.

Body

  • Discuss why private sector participation is needed in resource mobilization for infrastructure needs. E.g government revenue is limited, private investment spurs growth and brings technology and innovation ( in ideal situation) etc.
  • Discuss the steps taken by the government to increase private sector participation in resource mobilization for the country’s infrastructure needs. E.g  BAMII, NIIF, Credit Enhancement Fund for raising bond ratings issued by infra companies, the New Credit Rating scale for infrastructure projects, InvITS, BOT etc.

Conclusion- Form a balanced and concise conclusion based on your discussion and suggest a way forward.