Case Study about Risk Analysis of Infrastructure Projects
Abstract: The growth of the infrastructure sector in India has been relatively slow compared with the industrial and manufacturing sectors. The energy shortage, an inadequate transportation network, and an insufficient water supply system have caused a bottleneck in the country’s economic growth. The Build-Operate-Transfer (BOT) scheme is now becoming one of the prevailing ways for infrastructure development in India to meet the needs of India’s future economic growth and development. There are tremendous opportunities for foreign investors. However, undertaking infrastructure business in India involves many risks and problems that are due mainly to differences in legal systems, market conditions and culture.
Introduction: India’s economy has shown remarkable growth over the past several years and many foreign economists predict a healthy growth in the near future. A private international forecasting firm predicts that India’s GDP will grow at an average annual rate of about 8 per cent between 2010 and the year 2015. India’s investment reforms, rapid economic growth and social development have led to a surge in foreign direct investment (FDI). Annual utilized FDI in India grew from $636 million in 1991 to $26billion in 2009, making India, in recent years, the third largest destination of FDI in the world.
Click here to read more on Risk Analysis of Infrastructure Projects
