Indian economy (BB301)Infrastructure <br />Course Instructor – Anshu Singh<br />
Infrastructure<br />Infrastructure is the basic physical and organizational structures needed for <br />the operation of a...
<ul><li>While economic infrastructure fosters economic growth and physical development of the economy, social infrastructu...
The demand for infrastructure in the 11th Five Year Plan (2007-2011) has been estimated to be US$ 492.5 billion(Planning C...
Infrastructure – Still a challenge<br />Low priority in plans<br />Huge requirement of investment<br />Exclusion of privat...
Components of Transport<br />Roadways<br />Railways<br />Water transport<br />Air transport<br />
Role of transport in development<br />Promotes agricultural development<br />Promotes industrial development<br />Facilita...
Political importance<br />Roads help in saving time and cost<br />They provide personal service with respect to timing, su...
              Energy<br />Very important part of infrastructure<br />No industrial production is possible without energy<b...
Conventional sources of energy are those that are known to us and are being used since a long time.<br />Non conventional ...
Power Generation – Emerging Challenges<br />Inadequate generation of electricity has given rise to several other problems ...
 Communication <br />Communication is a means of transmission of information. It includes postal <br />services, telecommu...
Irrigation<br />Although Indian agriculture is dependent on monsoon to a great extent, the importance and the role of irri...
Unequal distribution of rainfall
Period of rainfall
Special crops
Intensive cultivation
More crop production</li></li></ul><li>Significance of irrigation contd..<br />Waste land<br />Control over floods<br />Co...
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Infrastructure

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Infrastructure

  1. 1. Indian economy (BB301)Infrastructure <br />Course Instructor – Anshu Singh<br />
  2. 2. Infrastructure<br />Infrastructure is the basic physical and organizational structures needed for <br />the operation of a society or enterprise, or the services and facilities <br />necessary for an economy to function.<br />
  3. 3. <ul><li>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. 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</li></li></ul><li>Infrastructure and Economic Development<br />Infrastructure raises production and productivity<br />Induces investment<br />Generates linkages in production<br />Enhances size of the market<br />Enhances ability to work<br />Facilitates outsourcing<br />Promotes employment<br />Induces FDI<br />Facilitates international trade<br />Improves standard of living<br />Boosts agriculture<br />Promotes technological advancement<br />
  5. 5. Infrastructure – Still a challenge<br />Low priority in plans<br />Huge requirement of investment<br />Exclusion of private sector<br />Regional imbalance<br />Poor maintenance<br />Less expenditure on research and development<br />Long gestation period<br />Inefficient utilization of funds and other resources<br />
  6. 6. Components of Transport<br />Roadways<br />Railways<br />Water transport<br />Air transport<br />
  7. 7. Role of transport in development<br />Promotes agricultural development<br />Promotes industrial development<br />Facilitates large scale production<br />Development of rural and remote areas<br />Employment generation<br />National defence<br />Optimum utilization of resources<br />Backbone of trade<br />Helps during natural calamities like floods and famines.<br />Social transformation<br />Mobility of labour and capital<br />Increase in national income<br />Postal services<br />Encouragement to tourism<br />Availability of goods and services<br />
  8. 8. Political importance<br />Roads help in saving time and cost<br />They provide personal service with respect to timing, suitable vehicles etc.<br />Water and road are often cheap mode of transport.<br />Must for international trade and helps in earning foreign exchange<br />
  9. 9. Energy<br />Very important part of infrastructure<br />No industrial production is possible without energy<br />It is like a lifeline for the existence of human lives<br />Agriculture also needs energy to run tubewells, tractors and thrashers.<br />Energy is of two types commercial and non commercial<br />Non commercial includes firewood, agricultural waste and animal waste and is generally used for domestic purposes like cooking<br />Coal, petroleum, natural gas, electricity and wind are more commercial forms of energy. <br />They are used for commercial purposes in factories and farms and command a price.<br />Energy can further be classified into conventional and non conventional sources.<br />
  10. 10. Conventional sources of energy are those that are known to us and are being used since a long time.<br />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.<br />
  11. 11. Power Generation – Emerging Challenges<br />Inadequate generation of electricity has given rise to several other problems like excessive load on distribution, volta-0ge fluctuation, power cuts etc<br />The shortage of electricity was about 10 % in 2008 – 09<br />Less capacity utilization<br />Losses of Electricity Boards<br />Huge investment requirement<br />Energy crisis leads to inflationary pressures<br />Balance of payment problems<br />Difficult to maintain sustainable growth<br />Encourage better participation from private and foreign players (FDI)<br />
  12. 12. Communication <br />Communication is a means of transmission of information. It includes postal <br />services, telecommunication, internet etc.<br />Telecommunication<br />The land line phones, cellular phones, internet services, fax services etc are <br />important means of telecommunication. This sector has seen immense <br />growth in India<br /> Number of Subscribers of Telecommunications(in Lakhs)<br />
  13. 13. Irrigation<br />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.<br />Once Mahatma Gandhi said, “ In the absence of irrigation, agriculture is nothing more than a gamble.<br />Following points stress why irrigation is very important for Indian agriculture<br /><ul><li>Irregularities of rainfall
  14. 14. Unequal distribution of rainfall
  15. 15. Period of rainfall
  16. 16. Special crops
  17. 17. Intensive cultivation
  18. 18. More crop production</li></li></ul><li>Significance of irrigation contd..<br />Waste land<br />Control over floods<br />Control over famines<br />Employment<br />Government income<br />Economic development<br />Useful for pastures<br />Development of inland water transport<br />Commercial farming<br />Irrigation under 11th plan<br />In eleventh five year plan Rs 2,10,326 Cr is proposed to be spent on irrigation and <br />flood control. Main irrigation targets are as follows<br />
  19. 19. SCIENCE AND TECHNOLOGY<br />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.<br /><ul><li>Ne products are innovated
  20. 20. Quality of existing products are improved
  21. 21. Cost of production comes down
  22. 22. Helps in optimum utilization of resources
  23. 23. Saves time by providing faster means of </li></ul>working<br /><ul><li>Has revolutionized other sectors of infrastructure like health, education , irrigation, banking, transportation, communication etc.</li></li></ul><li>Institutions for promoting research<br />Following are few departments and institutions set up by Govt for promoting <br />science and technology<br />Dept of Science and Technology<br />Dept of Atomic Energy<br />Dept of Biotechnology<br />Dept of Space<br />Indian Council of Agricultural Research<br />Indian council of Medical Research<br />Dept of Ocean Development<br />Indian Institute of Chemical Technology<br />National Geographical Research Institute<br />National Research Development Corporation<br />
  24. 24. Health <br />Health is an integral part of social infrastructure. It is essential for the citizen of the country<br />to be healthy and fit. In the eleventh plan also massive thrust has been placed on health related issues.<br />It can be gauged that there has been significant improvement in health services since independence<br /><ul><li>Decline in death rate
  25. 25. Reduction in infant mortality
  26. 26. Rise in avg expectancy of life
  27. 27. Control over deadly diseases
  28. 28. Reduction in child mortality rate.
  29. 29. The number of dispensaries and hospitals has increased from 9,209 to 33,855.
  30. 30. The number of doctors have increased from 61,840 to 7,25,00</li></li></ul><li> Education<br />Although education is one of the priority issues of developing nations, the growth in this regard<br />In India has been very little. <br />Education sector requires government intervention and particularly for elementary education.<br /> Education in 11 th plan<br /><ul><li>Improve the quality of education. Promote mid day meal scheme for increasing attendance in school
  31. 31. Emphasis on secondary and higher education
  32. 32. SarvaSikshaAbhiyaan will be promoted to universalize elementary education.
  33. 33. Encouraging private sector participation in higher education and skill development
  34. 34. Lower gender gap in literacy to 10 percentage points
  35. 35. Increase literacy rate for 7 yrs and above to 85 %
  36. 36. Reduce dropout rates of children</li>

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