The $1.5-trillion puzzle India needs to solve

India needs a solution to a $1.5 trillion-plus puzzle.

That's what it will need to invest in infrastructure over the next decade if it is to have any hope of achieving its aspiration of 10 percent GDP growth.

The government and banks, India's traditional sources of infrastructure funding, won't be able to carry that load on their own.

Financial liberalisation, something the country has hitherto shied away from, could help fill the gap.

Image: A man looks at vehicles stuck in a road that caved in after heavy rains in Ahmedabad in 2008.

Text: John Foley, Hugo Dixon, Reuters

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