Budget 2013: 'Investments in infra should be encouraged'

The finance minister will have to balance the twinimperatives of encouraging domestic demand and stimulating growth, whilstkeeping the fiscal deficit and inflation under control.

A prerequisite for domestic growth is encouraginginvestments in infrastructure, including healthcare and education.

This would require increasing the availability and reducingthe cost of long-term funding - through dedicated infrastructure debt funds,fiscal incentives, and encouraging PPP models to improve on-ground projectexecution. Improved infrastructure would lower the cost of doing business inIndia, and provide multiplier benefits for the economy.

Darius Pandole is Partner at New Silk Route Advisors