Infrastructure needs to be seen as a factor of production says RBI deputy governor

M. Rajeshwar Rao, Deputy Governor, Reserve Bank of India noted in a latest speech that as Indian economy continues to grow, it is imperative that infrastructure is seen as a factor of production like labour and capital to attract necessary focus considering its multiplier effects in capacity building, developmental outcomes, and societal well-being. The long lifecycle of infrastructure projects necessitates the involvement of different financial entities specializing in various phases of the project aiding the process by refinancing, transferring, and taking over of projects between these entities. A comparatively underdeveloped financial system, and a market for raising debt for the infrastructure sector, had made the sector reliant upon banks and NBFCs for its financing needs.

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