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US official believes India can become `world class trading power`
New Delhi, Aug 11: India can become a ``world class trading power``, provided it develops infrastructure and encouarges private investment to meet the ever-increasing demand for financing utility services, says a US official.
New Delhi, Aug 11: India can become a ''world class trading power'', provided it develops infrastructure and encouarges private investment to meet the ever-increasing demand for financing utility services, says a US official.
''If India is to become a world class trading power, it must develop its ports, roads, rails, power, water and sewage systems,'' Washington state representative Edward Murray told reporters here on the sidelines of a seminar on financing infrastructure development through public-private partnership.
He said an inadequate system of infrastructure would create bottlenecks and hindrances to faster growth. ''And faster growth means more jobs and higher living standards for the Indians.''
''The challenges for financing the infrastructure development projects in India are daunting,'' Murray said suggesting to explore new ways of raising funds and alternatives for utility services, besides encouraging private investment in the infrastructure sector. Murray drew attention to the recent phenomenon of globalising financial flows, which has integrated the financial markets all over the world, and it has often been seen as a solution towards financing long-term capital investments in infrastructure projects.
Such initiatives in India have, however, remained limited due to the very composition of foreign capital inflow and the nature of the sectors that largely attract these funds.
The flow of foreign funds to India was largely in the form of short-term portfolio investments rather than long-term foreign direct investments, which could be utilised for financing infrastructure projects, he added.
Assuring to continue the US assistance to meet the challenge, he pointed out that the United States Agency for International Development (USAID) has supported infrastructure development finance through programmes such as financial institutions reform and expansion (fire).
The fire project has developed a credit rating system for municipalities, aided in water sanitation financing in Tamil Nadu and assisted Ahmedabad to issue its municipal bond for infrastructure development.
Bureau Report
''If India is to become a world class trading power, it must develop its ports, roads, rails, power, water and sewage systems,'' Washington state representative Edward Murray told reporters here on the sidelines of a seminar on financing infrastructure development through public-private partnership.
He said an inadequate system of infrastructure would create bottlenecks and hindrances to faster growth. ''And faster growth means more jobs and higher living standards for the Indians.''
''The challenges for financing the infrastructure development projects in India are daunting,'' Murray said suggesting to explore new ways of raising funds and alternatives for utility services, besides encouraging private investment in the infrastructure sector. Murray drew attention to the recent phenomenon of globalising financial flows, which has integrated the financial markets all over the world, and it has often been seen as a solution towards financing long-term capital investments in infrastructure projects.
Such initiatives in India have, however, remained limited due to the very composition of foreign capital inflow and the nature of the sectors that largely attract these funds.
The flow of foreign funds to India was largely in the form of short-term portfolio investments rather than long-term foreign direct investments, which could be utilised for financing infrastructure projects, he added.
Assuring to continue the US assistance to meet the challenge, he pointed out that the United States Agency for International Development (USAID) has supported infrastructure development finance through programmes such as financial institutions reform and expansion (fire).
The fire project has developed a credit rating system for municipalities, aided in water sanitation financing in Tamil Nadu and assisted Ahmedabad to issue its municipal bond for infrastructure development.
Bureau Report