Narendra Modi displays his invitation to form a government received from Indian President Pranab Mukherjee following the BJP’s landslide victory (Virendra Singh Gosain/Hindustan Times via Getty Images)

France may lend India $1.4bn for infrastructure

3 July 2014 | By Rod Sweet 0 Comments

France is considering giving India a $1.4 billion (one billion euros) credit line to fund infrastructure and development projects.

Announced by French foreign minister Laurent Fabius during a visit to India on Tuesday this week, the credit would be available over three years and could help India upgrade its dilapidated infrastructure, Reuters reported.

India has said it needs $1 trillion of investment by 2017 and is keen to attract foreign investment to help finance new roads, railways and cities. 

Prime Minister Narendra Modi, who took office in May, has vowed to focus on infrastructure.

Fabius is the first of a string of Western politicians due to visit India over the next few weeks for talks with the Modi government.

To date, Japan has been a key investor in the Delhi-Mumbai Industrial Corridor, a mega infrastructure project that envisages dozens of new industrial zones and cities sprouting alongside a 1,483-kilometre highway stretch between India’s biggest two cities.