PM Modi needs rivals’ help to meet $3 trillion infrastructure target

Prime Minister Narendra Modi must invest trillions of dollars on roads and other critical infrastructure if he is to pull the economy out of its slump, with at least half coming from provincial governments that are out of his control.

India will need to spend Rs 235 lakh crores ($3.3 trillion) on infrastructure over the coming decade to return economic growth rates to more than 7.5 per cent, according to CRISIL Infrastructure Advisor. “That means the Indian states will have to more than triple their contributions from the current decade,” it said.

With private investments tepid in recent years, and fiscal limitations on central spending, states will need to step up contributions from about 41 per cent now, Sameer Bhatia, President of the S&P Group company, said in the report published on Tuesday.