Do not depend on foreign funds to execute projects: Expert

Kolkata: India need not entirely depend upon foreign funds for execution of projects in the pipeline for the next five years, according to Mr Nilesh Shah, Deputy Managing Director, ICICI Prudential Mutual Fund.

According to him, the amount of savings projected to be generated in the country during the period could by and large take care of the investment requirement of different sectors.

Addressing a seminar organised by the Institute of Chartered Accountants of India (ICAI) here on Saturday, Mr Shah said, 'The country’s savings will amount to $350 billion every year, and thus touch the level of $1.6-$1.7 trillion in next five years whereas the total investment to be needed in all new projects in different sectors in next five years would be $500 billion,' he said, adding, 'we therefore need not necessarily depend entirely on foreign funds'.

Investment requirements for power generation would rise by 51 per cent over the next five years, and for port development by 106 per cent, Mr Shah estimated. For implementation of the refinery projects, 60 per cent rise in investment would be needed, and for gas projects 180 per cent, he said.

He also pointed out that the sharp rise in oil import bill, an estimated $125 billion this year as compared with $75 billion last year, would hit hard the Indian economy.

Mr Amitava Chakraborty, President (Equity), Religare Securities Ltd, said, 'The share market has reached a consolidation phase and there will be limited downtrend in valuation henceforth.'

Real estate and banking sectors could surprise the market with strong growth figures, he said.

'The Sensex is expected to vary between 10,500 points and 14,500 points this year,' he added.