Cost overruns: A major concern in India
Delays in project implementation and cost overruns are the biggest concerns pertaining to funding India, according to the Beijing-headquartered Asian Infrastructure Investment Bank (AIIB). Regulatory issues and land acquisitions are some of the other challenges that surround funding in India. The multilateral organisation has US$ 3 billion exposure to India, which will continue to be the largest borrower in the near future.
Exuding confidence in the Indian economy, the Beijing-headquartered bank also stated that it is not too perturbed by the negative headlines on GDP expansion and believes that the current slowdown is temporary and more cyclical in nature. However, the bank added that the government must do more for infrastructure as it helps in recovering from slowdown.