India has to compete with other markets globally to evolve into an investment-friendly environment, to fully exploit its potential, according to Bruce Andrews, US Deputy Secretary of Commerce.
Addressing a seminar on Smart Cities organised by the Indo-American Chamber of Commerce, Andrews said, “In a world with mobility of capital, it is not enough to simply make your market slightly more attractive, or to make it slightly easier to do business. You must do everything you can to make your market the most attractive investment destination it can be.”
Andrews, leading a Smart Cities Trade Mission of 18 US companies in environment and technology, said lingering challenges need to be addressed for greater US private sector investment.
For example, capital-intensive infrastructure projects are often delayed by protracted legal disputes and the inability to find financing. Improving firms’ access to private capital, including through further development of India’s capital markets and improvements to the framework for public-private partnerships will help, he said.
R Srinivasan, Vice-President and Head (Smart World and Communication), Larsen & Toubro, said as India targets upgrading quality of 100 cities to modern standards, there are huge challenges in attracting funding, indentifying quality partners and coordination with multiple government agencies.
Leocadia Zak, Director of US Trade and Development Agency, said the agency, which funds project preparation, is keen on catalysing funding. Well prepared, bankable projects always find adequate financial resources. While there is a wide range of funding options including municipal bonds, the regulatory environment has to ensure that these are de-risked adequately for investors.