| While the government is working towards getting a 8.5-9 per cent growth in the next plan period, HSBC is of the view this just isn't going to happen since there's no way India can possibly meet the infrastructure needed "" such spending will have to rise from the current 4.6 per cent of GDP to around 7-8 per cent. |
| According to HSBC's Global Research team, India needs a total of $370 bn of infrastructure investment, in the next plan period, 40 per cent of which is to come from the private sector and the rest from the public sector. |
| As for the private sector investments, HSBC says the banking system has an asset-liability mismatch and so the figure is not possible without developing the virtually non-existent corporate bond market in India "" without this, the annual private sector shortfall will be around $20 bn over the plan period (pessimistic scenario), though with it (optimistic scenario), HSBC thinks things will work out. |
| As for public investment, HSBC endorses the Planning Commission view that it cannot happen without relaxing the FRBM targets. |
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