16 September, 2009

India needs$1.7 tn for infra over 10 yrs-Goldman Sachs

India may require $1.7- trillion for ten years beginning 2010 to meet infrastructure demand and keep pace with economic growth and urbanization, said Goldman Sachs. The figure is higher than Goldman's previous estimate of $620-billion and the Government's estimate of $500- billion for the Eleventh Five Year Plan (2007-12). For the decade between 2010 and 2019, (in today's prices) India may require $1.7 trillion in the infrastructure sector, especially in roads, power, ports, telecom, water, sanitation and irrigation. Of this, power and roads alone may require upwards of $700 billion .  

India's savings rate could reach 40 per cent in the next few years and can potentially be sustained at high levels for well over a decade. The annual pool of financial savings can potentially rise to $800-billion by 2020, which would be about one-and- a-half-times the current stock of credit by the banking system