Second India Infrastructure Project Financing Facility

ADB financial sector operations in India. The limited fiscal space for government guarantees, including to India Infrastructure Finance Company Limited, emphasizes the need for innovation and well-structured ADB interventions in the financial sector and infrastructure financing, including public nonsovereign operations, for ADB to remain relevant to changes and financial market developments in India. It is becoming apparent that domestic capital market reforms are important to address the issue of long-term capital and provide opportunities for insurance, pension, provident, and mutual funds to finance infrastructure development in India. [Main text, para. 53]