International Finance Corporation
The International Finance Corporation (IFC), an arm of the World Bank, has recently advised India to tap local savings to generate trillion-dollar infrastructure development requirement as the current situation of cheap global capital flows won't last forever and the best way to mitigate the financial risk more often is to mobilize local capital, which India has in aboundance, said CEO, Jin-Yong, adding that while the huge amount of global liquidity and cheap capital flows provided a window of opportunity for countries such as India looking to build infrastructure. In India, the most recent 'mini-crisis', has triggered some soul searching in the government and is really about how to deal with the complex regulatory framework. The body just launched rupee-linked bonds for investing in India as part of a $1-billion program, which saw strong subscription interest from investors, he told an audience of large infrastructure investors and financiers at the national conference on Public Private Partnerships (PPPs) hosted by the Canadian Council for PPPs recently.

The CEO, who headed Goldman Sachs's China business before joining the IFC last year, further added that there is a lot of interest among global investors about opportunities in India, citing the success of the first tranche of offshore rupee bonds worth $160 million issued by the corporation recently. Inadequate infrastructure is the main factor that holds back economic development and blunts poverty alleviation efforts in emerging markets such as India. But fears over regulatory risk and political instability keep global investors away from infrastructure projects. Political leadership is clearly a prerequisite for successful PPPs and this is where institutions like the IFC and World Bank can play a critical role in advising and influencing governments to ensure that an equal system is worked out where investors benefit along with the people. In fact, India accounted for $4.5 billion of IFC's committed investment portfolio as of June this year, higher than any other country and in 2013 the corporation invested $1.38 billion in Indian ventures.