Infrastructure investors more interested in India than China's OBOR
Bloomberg | May 16, 2018, 11:52 IST
NEW DELHI: Some of Asia’s biggest infrastructure investors are seeing plenty of opportunities in India. In China’s mammoth Belt-and-Road initiative, however, not so much.
India is a key market for Macquarie Group thanks to strong economic growth and state asset sales, said Frank Kwok, co-head of Asia Pacific at Macquarie Infrastructure & Real Assets. Hence its recent purchase of nine toll-roads with charges indexed to inflation.
China’s Belt-and-Road, however is more driven by geopolitics than investment returns, he said at the Bloomberg Invest Australia summit in Sydney on Wednesday.
”It’s very much a China-led initiative, but really it’s about the entire region,” said Kwok. “But because one of the main drivers is that it’s for China to exert its influence over the region, financial returns are probably not the top priority.”
Asia’s developing economies will need to spend about $22.6 trillion on projects like roads, bridges, ports and railways over the 15 years to 2030 in order to maintain economic growth and reduce poverty, according to the Asian Development Bank(ADB). China has stepped in to fund some of those investments with Belt-and-Road.
President Xi’s vision, first proposed in 2013 and now enshrined in the Communist Party’s constitution, involves spending as much as $1.2 trillion on railways, roads, ports and power grids over the next decade, according to Morgan Stanley. The intent is to open new business opportunities for domestic companies and extend China’s reach -- even though the route cuts through multiple conflict zones and some of the world’s most corrupt countries.
Still, India poses its own challenges, said Cyril Cabanes, head of Asia Pacific infrastructure transactions at Caisse de Depot et Placement du Quebec, Canada’s second-biggest pension-fund manager. He says the opportunity is clear, but the deals are slow to come.
All because of our hero Modi....the man who works non stop for 18 hours.....
No Doubt for development plans for INDIA next decade needs are renewal energy, developments in railways, New High ways roads, ports , power grids agriculture sectors. Asian Development Bank (ADB) supports INDIAN ECONOMY GROWTH for ASIA .Political support for coodination and implementation is desired to MAKE IT HAPPEN !
5 Shailendra Kumar Mishra
Shailendra Kumar Mishra-kolkata-15 hours ago-Follow
Jai Bharat...New INDIA in making.
Chethan Kumar-Bengaluru-15 hours ago-Follow
If Modi stays are PM for next two terms, definately INDIA will be Super Power Nation.
Partha Roy-14 hours ago-Follow
One more term to Modi govt. and will be very much a force. Let Modi haters say otherwise.
Chachachow-15 hours ago-Follow
OBOR benefits China and Chinese companies which is why Investors are shying away also from it. Hambantota port in Sri Lanka is the best example. China will aim to take over these projects and make them military bases.
Bhai-13 hours ago-Follow
Very good news. Thanks to Modiji government. After 70 years of corrupt Congressee rule, we are seeing good future ahead. India need Modiji as long as he can work.