I would argue that if the infrastructure sector has failed to live up to the expectations, it is more on account of lack of an “enabling environment” and the quality of demand rather than due to monetary policy actions that have some bearing on the availability of funds or the cost of borrowing. 13.
The availability/supply of goods and services in the market place presupposes the existence of demand by the consumers. The fast paced growth in the Indian economy witnessed in the past decade has placed increasing stress on physical infrastructure, such as electricity, railways, roads, ports, airports, irrigation, urban and rural water supply and sanitation, all of which already suffered from a “marked” deficit.