India needs corporate debt market to develop infra: PM

New Delhi, Feb 16 (PTI) Prime Minister Manmohan Singhtoday said India needs to develop a corporate debt market tomeet the projected investment of USD 1 trillion required tosustain the country''s economic growth rate in the 12thFive-Year Plan (2012-2017).

A corporate debt market enables private industry to raisefunds through debt instruments and channelise these intospecific sectors, including infrastructure.

"We must, I think, create a viable corporate debt market.

I think that is the direction in which we must move," Singhsaid during his meeting with editors of the electronic mediahere.

He also said in addition to these steps, India needs toattract investment from foreign countries.

Discussions are going on to create a infrastructuredevelopment fund and Finance Minister Pranab Mukherjee maymake some announcements in this direction, he said.

"I think some discussions are going on... and mostprobably, I think, Finance Minister will outline something inthat direction," he added.

Poor infrastructure, including bad roads and powershortage, are affecting the country''s growth and flow offoreign direct investment (FDI) in important areas.

The government has projected an investment of USD 1trillion in the country''s infrastructure sector in the 12thFive-Year Plan, of which it expects 50 per cent to come fromthe private sector.