India initiated an ambitious reform programme, involving a shift from a controlled to an open market economy showing signs of overheating because of basic infrastructure constraints, both physical and human. So far, the bulk of infrastructure was in the public sector. Public sector in India operating in a protected set up has been largely subsidised by the Government. Since the launching of reform, Government is trying to reduce its borrowing which means that further subsidization will not be possible.
There is one area where there is a need for private sector and foreign investment to come in. Because of the long gestation period, and many social implications, the infrastructure sector compares unfavorably with manufacturing and many other sectors. For this, specific policies in this area are need to make infrastructure attractive. Clearly, there is a wide gap between the potential demand for infrastructure for high growth and the available supply. This is the challenge placed before the economy, i.e. before the public and private sector and foreign investors. This can also be seen as an opportunity for a widening market and enhanced production.
Source : http://www.asiatradehub.com/
Related Posts:
- BSE (Bombay Stock Exchange)
- NSE (National Stock Exchange)
- NCDEX (National Commodity and Derivatives Exchange)
- MCX (Multi Commodity Exchange)
- NSDL (National Securities Depository Limited)
- Money Control