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| Feature: Eastern Promise |
A Passage to India
Saritha Rai
09/01/2005
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Many
private equity funds and real estate funds are eyeing opportunities in large
infrastructure projects. The Singh government is trying to attract money to
modernize a country in which so many vast stretches are trapped in the
developing world. Large cities are currently making do with airports that appear
more like American Greyhound bus stations with runways, as well as with
traffic-clogged roads and acute energy shortages.
Infrastructure experts
estimate that India needs $55 billion to upgrade its railways and airports, $75
billion to meet its energy needs and $25 billion to develop telecommunications
infrastructure. With its fiscal deficit, India has no choice but to look to
domestic and foreign investors to fund and improve infrastructure—another reason
why the government is eager to do away with red tape. If the liberalization
program can continue to reduce barriers to outside investment, foreigners can
prepare to reap the rewards for building the foundations of a country poised on
a fresh growth wave. Saritha Rai is a Bangalore, India-based business writer.
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