For economists rail and roads are not just ways to move around but are parts of infrastructure and vehicles of growth.
This ironic observation rings particularly true when applied to India today. India needs to expand its infrastructure facilities in the form of road and railway transport system, ports, power, airports, communication system, health and education.
Infrastructure is the basic requirement of economic development. It does not directly produce goods and services but facilitates production in primary, secondary and tertiary economic activities by creating positive external economies. The level of economic development in any country directly depends on the development of infrastructure.
Lee (2011) claims in a study that “Without adequate infrastructure, modern commerce characterised by production specialisation and exchange across markets would grind to a halt." Economic globalisation would not take place without the reduction in communication and transportation costs brought about by the progress achieved in the development of infrastructure within and across countries.
In Indian planning, high priority was given to the development of infrastructure and a huge amount of fund was allocated in different plans for building various infrastructural facilities. In the first seven plans, more than half of the total plan outlay was devoted to the development of infrastructure.
But in recent times, the old paradigm of infrastructure being a public sector monopoly is under duress due to fiscal constraints and technological innovations. Limits on budgetary allocations and public debt and the dismantling of the allocated system of credit have catalysed the encouragement of private entry in infrastructure. The onus of building basic infrastructure, however, still lies largely with the government.
Government’s recent initiatives to improve infrastructure
هذه القصة مأخوذة من طبعة September 1-15, 2019 من BUSINESS ECONOMICS.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة September 1-15, 2019 من BUSINESS ECONOMICS.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Bank of Baroda, Kolkata Zone organised Mega Kisan Melas in West Bengal
Bank of Baroda (BOB) organised Mega Kisan Mela at Konkalitala in Birbhum District of West Bengal on November 18, 2024 as a part of the 7th Edition of the Baroda Kisan Pakhwada (BKP).
Time-Bound Disposal of Cases to Expedite the Delivery of Justice and affordabe by all in India
The delay in the disposal of cases in Indian courts remains a significant hurdle to the nation's progress.
Dev Deepawali: A grand celebration of light, spirituality, and culture in Varanasi
The holy city of Varanasi, often regarded as India's spiritual and cultural heart, came alive with the splendor of Dev Deepawali on the sacred day of Kartik Purnima.
The life of Job 'Ye judge not the judgment of God' - Jesus Christ
The Holy Bible reveals through the life of Job how the Lord tests the righteous and that faith helps one to overcome life's adversities.
India has the highest potential for the garment industry, only a conducive government policy is required.
India's textile industry is poised for remarkable growth, with expectations to double its contribution to the GDP within the next six to seven years.
Global Public Debt may be worse than it appears, warns IMF
Global Public Debt Set to Exceed $100 Trillion, Warns IMF
The economic consequences of Trump's Presidency: A global perspective
One of the key economic factors contributing to the Democrats' loss in the US elections was the significant rise in inflation, which was initially triggered by the COVID-19 pandemic and exacerbated by the Russia-Ukraine war.
Challenges and Successes in West Bengal's Education Sector: A Comprehensive Overview
The education system in West Bengal, particularly in districts, villages, slums, and government institutions, reflects a blend of progress and ongoing challenges.
What India can expect from Trump's return
I may be too early to predict how Donald Trump's second term as president will impact the global oil market.
Stocks Surge Following Donald Trump's Election as 47th President of the USA
Stocks soared following the election of Donald Trump as the 47th President of the United States. Investors anticipated that the Information Technology (IT) sector would benefit from lower corporate taxes under the Republican regime, with IT stocks leading the rally.