The other issues are project structuring issues related to risk estimation, allocation and mitigation, delays in getting clearances and land acquisition, lack of an independent regulator for infrastructural sectors and contractual issues and inadequate arrangements for dispute resolution and arbitration, leading to prolonged litigation.Infrastructure-creation efforts in India are predominantly public sector-led. As per the Infrastructure Monitor 2023 published by Global Infrastructure Hub and the World Bank, India’s investment in infrastructure was largely funded by the public sector — which includes Government agencies and state-owned entities and banks. Between fiscal year 2019 and 2023, the Central and State Governments contributed 49% and 29% of the total investments, respectively. Meanwhile, the private sector contributed 22%. The Eco Survey said that for India to continue down the path of building quality infrastructure, a higher level of private sector financing and resource mobilisation from new sources will be crucial. “Facilitating this would not only require policy and institutional support from the Central Government, but State and Local Governments would have to play an equally important role. International experience shows us how initiatives at the sub-national level can facilitate resource mobilisation for infrastructure development,” noted the survey.
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