Infrastructure Investment: The Financial Roadmap for Sustaining Growth
The Finance Ministry plans a meeting with financial institution heads to tackle infrastructure funding issues. To accommodate a targeted Rs 11.21 lakh crore capex, discussions will explore credit availability amidst a government priority on public spending. The meeting also addresses the need for increased private investment.
- Country:
- India
On September 11, the Finance Ministry will convene a crucial meeting with leaders of major financial institutions, including large banks. The agenda focuses on infrastructure funding challenges, emphasizing the need for expanded credit availability as the government intensifies its public capital expenditure initiatives.
Chaired by Financial Services Secretary M Nagaraju, the discussion will scrutinize this year's ambitious Rs 11.21 lakh crore capex plan, revealing a potential Rs 93,000 crore spending shortfall. The Economic Survey for 2024-25 underscores the essential scale-up of infrastructure investment over the next twenty years to maintain robust economic growth.
To bolster financial sector involvement, new norms from the Reserve Bank have reduced general provision requirements, easing lender burdens by adjusting minimum provision rates on various real estate portfolios. These adjustments, effective October 1, aim to alleviate banks and ignite strategic investments in infrastructure projects.
(With inputs from agencies.)
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