With the launch of the Asset Monetisation Pipeline in February 2021, the GoI has set up an aggressive target of raising around ₹ 2.5 trillion in the next couple of years. Launch of the POWERGRID Infrastructure Investment Trust (‘PGInvIT’) IPO marks the first step in this direction.
India’s infrastructure is inadequate by world standards and in short supply, further stretched to limits by the growing population and increasing regional and rural-urban disparities. Grappling with funding constraints, delay in project timelines due to land acquisition and requirement of multiple regulatory and environmental approvals, investment in infrastructure sector is challenging. Still, India is betting big on infrastructure. Why is this so? How does it plan to achieve the Prime Minister’s vision to invest INR 100 lakh crore over the next 5 years?
The COVID-19 pandemic has been a crisis like no other. Such an increase in a nation’s debt, has caused a stress on the deficits of the countries, especially for under developed and developing countries who may already have been in trouble, pre-COVID. However, is raising sovereign debt level really as harmful as they say? What are the key considerations that may be kept in mind while raising national debt? Read on to find out more.