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Infrastructure

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  • 1. Indian economy (BB301)Infrastructure
    Course Instructor – Anshu Singh
  • 2. Infrastructure
    Infrastructure is the basic physical and organizational structures needed for
    the operation of a society or enterprise, or the services and facilities
    necessary for an economy to function.
  • 3.
    • While economic infrastructure fosters economic growth and physical development of the economy, social infrastructure facilitates human resource growth and development of good quality human resource. Both types of infrastructure are essential and complementary to each other.
    • 4. The demand for infrastructure in the 11th Five Year Plan (2007-2011) has been estimated to be US$ 492.5 billion(Planning Commission, 2007). To meet this growing demand, Government of India has planned to raise the investment in infrastructure from the present 4.7 percent of GDP to around 7.5 to 8 percent of GDP in the 11th Five Year Plan
  • Infrastructure and Economic Development
    Infrastructure raises production and productivity
    Induces investment
    Generates linkages in production
    Enhances size of the market
    Enhances ability to work
    Facilitates outsourcing
    Promotes employment
    Induces FDI
    Facilitates international trade
    Improves standard of living
    Boosts agriculture
    Promotes technological advancement
  • 5. Infrastructure – Still a challenge
    Low priority in plans
    Huge requirement of investment
    Exclusion of private sector
    Regional imbalance
    Poor maintenance
    Less expenditure on research and development
    Long gestation period
    Inefficient utilization of funds and other resources
  • 6. Components of Transport
    Roadways
    Railways
    Water transport
    Air transport
  • 7. Role of transport in development
    Promotes agricultural development
    Promotes industrial development
    Facilitates large scale production
    Development of rural and remote areas
    Employment generation
    National defence
    Optimum utilization of resources
    Backbone of trade
    Helps during natural calamities like floods and famines.
    Social transformation
    Mobility of labour and capital
    Increase in national income
    Postal services
    Encouragement to tourism
    Availability of goods and services
  • 8. Political importance
    Roads help in saving time and cost
    They provide personal service with respect to timing, suitable vehicles etc.
    Water and road are often cheap mode of transport.
    Must for international trade and helps in earning foreign exchange
  • 9. Energy
    Very important part of infrastructure
    No industrial production is possible without energy
    It is like a lifeline for the existence of human lives
    Agriculture also needs energy to run tubewells, tractors and thrashers.
    Energy is of two types commercial and non commercial
    Non commercial includes firewood, agricultural waste and animal waste and is generally used for domestic purposes like cooking
    Coal, petroleum, natural gas, electricity and wind are more commercial forms of energy.
    They are used for commercial purposes in factories and farms and command a price.
    Energy can further be classified into conventional and non conventional sources.
  • 10. Conventional sources of energy are those that are known to us and are being used since a long time.
    Non conventional sources are renewable sources which are also environment friendly like solar energy, wind energy, biomass energy, geothermal energy and energy through tides and waves.
  • 11. Power Generation – Emerging Challenges
    Inadequate generation of electricity has given rise to several other problems like excessive load on distribution, volta-0ge fluctuation, power cuts etc
    The shortage of electricity was about 10 % in 2008 – 09
    Less capacity utilization
    Losses of Electricity Boards
    Huge investment requirement
    Energy crisis leads to inflationary pressures
    Balance of payment problems
    Difficult to maintain sustainable growth
    Encourage better participation from private and foreign players (FDI)
  • 12. Communication
    Communication is a means of transmission of information. It includes postal
    services, telecommunication, internet etc.
    Telecommunication
    The land line phones, cellular phones, internet services, fax services etc are
    important means of telecommunication. This sector has seen immense
    growth in India
    Number of Subscribers of Telecommunications(in Lakhs)
  • 13. Irrigation
    Although Indian agriculture is dependent on monsoon to a great extent, the importance and the role of irrigation cannot be discarded. Irrigation refers to man made sources of water like tubewells, tanks , canals etc.
    Once Mahatma Gandhi said, “ In the absence of irrigation, agriculture is nothing more than a gamble.
    Following points stress why irrigation is very important for Indian agriculture
    • Irregularities of rainfall
    • 14. Unequal distribution of rainfall
    • 15. Period of rainfall
    • 16. Special crops
    • 17. Intensive cultivation
    • 18. More crop production
  • Significance of irrigation contd..
    Waste land
    Control over floods
    Control over famines
    Employment
    Government income
    Economic development
    Useful for pastures
    Development of inland water transport
    Commercial farming
    Irrigation under 11th plan
    In eleventh five year plan Rs 2,10,326 Cr is proposed to be spent on irrigation and
    flood control. Main irrigation targets are as follows
  • 19. SCIENCE AND TECHNOLOGY
    Today science and technology has become a vital part of economic infrastructure . It ensures optimum utilization of resources and helps the economy in the following ways.
    • Ne products are innovated
    • 20. Quality of existing products are improved
    • 21. Cost of production comes down
    • 22. Helps in optimum utilization of resources
    • 23. Saves time by providing faster means of
    working
    • Has revolutionized other sectors of infrastructure like health, education , irrigation, banking, transportation, communication etc.
  • Institutions for promoting research
    Following are few departments and institutions set up by Govt for promoting
    science and technology
    Dept of Science and Technology
    Dept of Atomic Energy
    Dept of Biotechnology
    Dept of Space
    Indian Council of Agricultural Research
    Indian council of Medical Research
    Dept of Ocean Development
    Indian Institute of Chemical Technology
    National Geographical Research Institute
    National Research Development Corporation
  • 24. Health
    Health is an integral part of social infrastructure. It is essential for the citizen of the country
    to be healthy and fit. In the eleventh plan also massive thrust has been placed on health related issues.
    It can be gauged that there has been significant improvement in health services since independence
    • Decline in death rate
    • 25. Reduction in infant mortality
    • 26. Rise in avg expectancy of life
    • 27. Control over deadly diseases
    • 28. Reduction in child mortality rate.
    • 29. The number of dispensaries and hospitals has increased from 9,209 to 33,855.
    • 30. The number of doctors have increased from 61,840 to 7,25,00
  • Education
    Although education is one of the priority issues of developing nations, the growth in this regard
    In India has been very little.
    Education sector requires government intervention and particularly for elementary education.
    Education in 11 th plan
    • Improve the quality of education. Promote mid day meal scheme for increasing attendance in school
    • 31. Emphasis on secondary and higher education
    • 32. SarvaSikshaAbhiyaan will be promoted to universalize elementary education.
    • 33. Encouraging private sector participation in higher education and skill development
    • 34. Lower gender gap in literacy to 10 percentage points
    • 35. Increase literacy rate for 7 yrs and above to 85 %
    • 36. Reduce dropout rates of children