India's Financial Shortfall In Infrastructure
Institutional investors support NIP projects in the development stage, while domestic retail investors invest in operational and revenue-generating assets on the secondary market.
The government wants to make India a $5 trillion economy by completing 9,364 projects worth $1.9 trillion under the NIP 2019-25. The massive financial shortfall is projected to be more than 5% of GDP. Access to global institutional funding is crucial to infrastructure development.
India's infrastructure narrative might come around if developers can build compelling financial instruments for institutional investors. If this is realised, the nation will be closer to a $ 5 trillion economy.