Budget 2013: 'Investments in infra should be encouraged'

The finance minister will have to balance the twin imperatives of encouraging domestic demand and stimulating growth, whilst keeping the fiscal deficit and inflation under control.

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

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

Darius Pandole is Partner at New Silk Route Advisors