Indian Infrastructure
With all the battering that we do to the infrastructure sector, there is also some good news. First is that Gross Capital Formation in Infrastructure is increasing. The 10th Plan average was 5.1 per cent of GDP. It is expected to be 7.1 per cent in the 11th Plan and estimated to go up to 9.7 per cent in the 12th Plan. In the early 1990s, we used to envy China at 9 per cent, saying can we ever match China when we were doing 3 per cent. This is tremendous good news, where across shades of different political dispensation we have had a silent movement of the tectonic plates of India's infrastructure geoplates. To achieve this in the kind of polity and democracy we are, in a space of 15 years, has been a major structural shift. Second, private-public-partnership is above expectations. During the 10th Plan, 25 per cent of our infrastructure was through PPP. The 10th Plan was largely driven by telecom and the early power projects. In the 11th Plan, the target was 30 per cent, but we achieved 37 per cent and in the 12th Plan there is reasonable confidence that we will do 50 per cent. This is a major change in India's infrastructure development. In the 10th Plan, the investment was $220 billion, of which 25 per cent came through PPP. In the 11th Plan, it is almost $480-500 billion of that 37 per cent, and 50 per cent of $1,000 billion in the 12th Plan. The third is we constantly debunk the Planning Commission. India is one of the few countries that officially publishes a Plan and the system is willing to be tested and criticised against its performance or non-performance. When the Planning Commission announced the 11th Plan figures, there was general scepticism. As the 11th Plan has come to an end, we have exceeded the planned $500-billion spend on infrastructure. A lot of capital investment in infrastructure is not officially captured. An irrigation