Bringing Investment in Construction Projects-Infrastructure India

Abstract

Construction projects (particularly  infrastructure) necessitate large capital investments both  during construction and operation, accounting for 3 to 8% of  a developing country's GDP. Construction and supporting  economic activity account for roughly half of all investments  in the economy. The construction sector in developing  nations must be incorporated in national development plans  in order to promote a healthy building market by gradually  developing the entire national economy while taking into  account interrelationships with other sectors of the economy.  In terms of private participation and financing, infrastructure  is one of the world's fastest growing sectors. The lack of debt  continues to be a major stumbling block for many private  infrastructure projects. Due to a worldwide financial crisis,  many developing countries have had reduced access to  capital markets. Due to a global drop in lending, increasing  investor uncertainty, and a lower willingness to assume risk,  many developing countries have had less access to capital  markets. "What has to be done to increase FDI to developing  countries?" is the question. There is plenty of room for  positive growth and access to new money in developing  countries. However, in order to realise such benefits, these  countries must first create the necessary legal, financial, and  technological infrastructure. International capital market  integration will continue to expand access to private foreign  finance for emerging countries. In order to access the  international financial markets and secure the necessary  finance for their PPI (Private Participation in Infrastructure)  projects, policymakers must adjust their policies to fit  investors' interests. Infrastructure private participation is  here to stay, and as more developing countries open their  doors to private investors, the policy debate has shifted from  "whether to" to "how to." The goal of this thesis is to come  up with a strategy that developing countries can use to  finance construction investment, particularly in  infrastructure, by improving and streamlining access to  domestic and international capital markets.