India's infrastructure story has become a laughing stock for global investors. Despite featuring prominently in successive 5-year plans, the sector never really took off despite billions being ear marked. Riddled in policy bottlenecks, poor execution, cost overruns, inadequate funding and corruption, the sector has become a dark spot in India's economic history. Even the large banks in the country that were so long riding on India's infra growth have given up on the sector's future. So much so that projects have halted midway for want of funds. But it seems all is not lost! And a ray of hope seems to be coming from the most unexpected quarters.

China, which has become the benchmark for infrastructure development globally, seems to be keen on replicating its success in India. In the past too the neighbouring country has shown interest in infrastructure financing. However, the attempts have been rebuffed by a government due to security issues in sectors such as telecom and power. But that has not discouraged the Chinese from making a concerted bid. It is has once again offered to fund 30% of India infra outlay for the 12th 5 year plan. One that envisages involvement in upgrading India's decrepit rail, road and power infrastructure besides telecom. So far Japan has been the only major economy offering funds for ambitious infra projects in India. However, China's interest in India infra funding pie is not difficult to understand. The dragon economy has US$ 3.8 trillion in its kitty. And with US Treasuries no long looking appealing, the economy is on the lookout for attractive investment opportunities.

Since India is in desperate need for long term external funds to realize the infra dreams, a helping hand from China could be a boon in disguise. That apart, China could also offer some technological and operational inputs. Whether the two neighbours can make it a win-win situation remains to be seen.