Tax-Free Bonds Accompany Spending in India Infrastructure Push

India will allow its cash-strapped railways, roadways and irrigation companies to raise funds through tax-free infrastructure bonds, as Prime Minister Narendra Modi seeks to remove bottlenecks to growth.

India will increase investment in infrastructure by 700 billion rupees ($11.3 billion) in the fiscal year starting April 1, as the state of roads, ports and airports does not match the ambitions of the fastest growing major economy in the world, the government said Saturday in a statement accompanying the release of the budget for the new fiscal year.