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Will the govt. deliver on infrastructure?
Wed, 30 Nov Pre-Open

India represents much opportunity. However, until it gets its infrastructure in order, that potential will be muted. The Indian government has finally gotten serious about upgrading the roads, electrical grid and waterways, and in that spending, investors can profit. However, India is likely to narrowly miss its target of investing US$ 500 bn in infrastructure under the five year plan ending in 2012. Provisional estimates have indicated that India would have spent around US$ 480 bn in the 11th five year plan which will be more than a doubling of investment compared to the previous plan.

The planning commission of India has set an ambitious target of spending US$ 1 trillion in the 12th five year plan. However there are many problems which need to be addressed before this target can be achieved. India ranks 51st overall in the World Economic Forum competitiveness index, but for infrastructure it fell to 86th this year. Inadequate supply of infrastructure was ranked as the most problematic factor for doing business in the country. India's infrastructure deficit acts as a brake that knocks an estimated 2% points off growth.

In order to hasten the process of infrastructure building the government needs to adopt a holistic approach to infrastructure for sustained development of the economy. Infrastructure related to health, information, water, housing, education, energy and logistics require equal focus to sustain the 8% plus growth in the long run.

Most of the infrastructure projects are held back or delayed due to land acquisition issues, lack of funding and execution delays. The Indian government has stepped up infrastructure spending in recent years, but the slow pace of reforms and a lack of long-term funding options constrain the sector's growth. The government in order to boost funding has also allowed setting up of infrastructure debt funds which are aimed at mobilizing the long term capital needed to improve the country's outdated infrastructure. The Reserve Bank of India (RBI) has also allowed foreign investors to invest in these funds provided they stay invested in them for minimum 3 years. This move by RBI will help raise funds for building infrastructure.

The 12th five-year plan focuses on removing some of these roadblocks and creating a sustainable framework for private-sector participation. Nevertheless, the fate of the infrastructure sector over the next few years will depend on the ability of India's leaders to execute these plans.

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Stock Market Updates

BAJAJ HIND. SUGAR plunges by 5%; BSE 500 Index Down 0.0% (Today's Market)

Jun 18, 2018 02:58 PM

BAJAJ HIND. SUGAR share price has plunged by 5% and its Current Market Price is Rs 7. The BSE 500 is down by 0.02%. The top gainers in the BSE 500 Index are JAIPRAKASH ASSO. (up 7.27%) and HPCL (up 5.18%). The top losers are BAJAJ HIND. SUGAR (down 5.00%) and TAKE SOLUTIONS (down 5.93%).

JAIPRAKASH ASSO. surges by 8%; BSE REALTY Index Up 0.1% (Today's Market)

Jun 18, 2018 02:22 PM

JAIPRAKASH ASSO. share price has surged by 8% and its Current Market Price is Rs 16. The BSE REALTY is up by 0.11%. The top gainers in the BSE REALTY Index is JAIPRAKASH ASSO. (up 7.96%). The top losers are GODREJ PROPERTIES (down 0.06%) and OMAXE LTD (down 0.28%).

P&G HYGIENE at All Time High; BSE FMCG Index Up 0.0% (Today's Market)

Jun 18, 2018 02:22 PM

P&G HYGIENE share price has hit an all time high at Rs 10,360 (up 4.46%). The BSE FMCG Index is up by 0.04%. Among the top gainers in the BSE FMCG Index today are P&G HYGIENE (up 4.46%) and GILLETTE INDIA (up 0.13%). The top losers include ITC LTD (down 0.06%) and GSK CONSUMER (down 0.06%).

INDO COUNT surges by 15%; BSE 500 Index Down 0.1% (Today's Market)

Jun 18, 2018 02:21 PM

INDO COUNT share price has surged by 15% and its Current Market Price is Rs 79. The BSE 500 is down by 0.07%. The top gainers in the BSE 500 Index is INDO COUNT (up 14.57%). The top losers are JK LAKSHMI CEMENT (down 0.02%) and DEEPAK FERTILISERS (down 0.02%).

Sensex Trades Rangebound; Metal, Pharma Stocks Top Losers (Today's Market)

Jun 18, 2018 12:30 pm

The BSE Sensex is trading down by 25 points, while the NSE Nifty is trading down by 5 points.

INDUSIND BANK at All Time High; BSE BANKEX Index Up 0.3% (Today's Market)

Jun 18, 2018 11:49 AM

INDUSIND BANK share price has hit an all time high at Rs 1,988 (up 1.11%). The BSE BANKEX Index is up by 0.32%. Among the top gainers in the BSE BANKEX Index today are INDUSIND BANK (up 1.11%) and YES BANK (up 0.44%). The top losers include SBI (down 0.18%) and AXIS BANK (down 0.38%).

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