ADB: India needs $320 billion in infrastructure to increase growth
An executive with the Asian Development Bank said he estimates India will need $320 billion over the next five years to push its GDP growth rate from 8 percent annually to 10 percent, an aim of the Indian government.
In an interview with the policy and finance journal Indian Infrastructure, Tadashi Kondo, ADB's country director, said $48 billion would be needed to upgrade roads, $5 billion for railways and $10 billion for ports. The bulk of the investment ($200 billion) is needed for power.
'India's demand for infrastructure investment is immense, and it needs the support of the World Bank, ADB and many bilateral partners in this effort to accelerate the growth of the economy,' he told the magazine. 'None of India's development partners can hope to satisfy the country's demand. Thus, all agencies are working to supplement each other, and are not in competition.'
Kondo said ADB's role is to mediate between India and international finance markets to provide long-term funding loans to fund projects. But he said ADB's limited resources would only go so far to meet India's growing demand for infrastructure.