INFRASTRUCTURE DEVELOPMENT IN INDIA
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Introduction (Free Available)
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12th Five Year Plan (Free Available)
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Introduction
India is the fourth largest economy in the world. However,
one factor which is a drag on its development is the lack of world class
infrastructure. In fact, estimates suggest that the lack of proper
infrastructure pulls down India’s GDP growth by 1-2 percent every year. Physical
infrastructure has a direct impact on the growth and overall development of an
economy. But, the fast growth of the Indian economy in recent years has placed
increasing stress on physical infrastructure, such as electricity, railways,
roads, ports, airports, irrigation, urban and rural water supply, and
sanitation, all of which already suffer from a substantial deficit. The goals of
inclusive growth and a 9 percent growth in GDP can be achieved only if this
infrastructure deficit is overcome. Infrastructure development will help in
creating a better investment climate in India. To develop infrastructure in the
country, the government is expected to revisit issues of budgetary allocation,
tariff policy, fiscal incentives, private sector participation, and
publicprivate partnerships (PPPs) with resolve.
There are many issues that need to be addressed in different
infrastructural fields. To begin with, the gap between electricity production
and demand is affecting both manufacturing and overall growth. Then though road
transport is the backbone of the Indian transport infrastructure, it is
inadequate in terms of quality, quantity, and connectivity. Also in the overall
transport sector, civil aviation and ports desperately need modernization. It is
expected that the public sector will continue to play an important role in
building transport infrastructure. However, the resources needed are much larger
than what the public sector can provide.
