1)The component of imports in infrastructure development is much less and hence most of the same will increase money supply and hence will be inflationary? 2)The bigger problem is pricing the use of infrastructure without which returns on such investments will not be there. If the infrastructure could be appropriately priced, securitisation of such inflows is a better option to build infrastucture. 3)India's economy is moving from agrirarian to services sector - Manufacturing is not developing and hence it is not sure that growth is sustainable. 4)Manufacturing sector has mainly benefitted due to declining rates of interest as they utilise more credit than services sector. The contribution of efficiency leading to its profitability is not apparent. FIIs inflows in this sector - without FDI picking up may be a short term phenomena. Hence reserves cannot be utilised.
