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Infrastructure investment gains prominence as a strong asset class — expert weighs in
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Infrastructure investment gains prominence as a strong asset class — expert weighs in
Oct 20, 2023 8:46 AM

India is currently embarking on a transformative journey, characterised by a bold governmental commitment to infuse an additional ₹110 lakh crore over the next five years into infrastructure development.

The central question is: How can domestic investors actively partake in the unfolding Indian infrastructure narrative? Concurrently, India's private credit market, a dynamic and integral component of the financial landscape, is playing a pivotal role in propelling economic expansion. Private lenders within this sector are catering to the diverse financing needs of businesses and individuals, particularly those who encounter challenges in accessing traditional banking channels.

Nitin Jain, the CEO of Neo Asset Management, recently shared insights with CNBC-TV18, shedding light on this evolving landscape. According to Jain, "From an infrastructure perspective, there's a substantial need for capital. A country as vast and ambitious as India, cannot progress without massive investments in infrastructure. It necessitates the infusion of private capital since government resources alone cannot suffice to create the necessary infrastructure. We serve as a conduit to provide capital from high-net-worth individuals (HNIs) and other investors, including institutions, sometimes offshore, channeling these investments into tangible assets and infrastructure projects in India."

Jain further emphasised, "Over the past 15 years, we've witnessed a substantial influx of private capital. However, institutional players such as pension funds and insurance companies face regulatory constraints, limiting their involvement primarily to fixed income bonds and exchange-traded funds (ETFs). These are alternative assets, and in my opinion, they should at least start evaluating the potential of these opportunities. Their participation could serve as a significant source of capital to catalyze India's infrastructure development and stimulate the country's economy."

Watch accompanying video for more

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