This document discusses the relationship between infrastructure development and economic growth in India. It defines infrastructure and identifies its two main types: economic infrastructure like transportation and energy, and social infrastructure such as education and healthcare. The document explains that infrastructure investment contributes directly to GDP growth and improves productivity. It outlines India's increasing infrastructure investment over decades through five-year plans. Current government plans aim to further boost investment in urban development, transportation, and manufacturing through initiatives like Smart Cities and Make in India.

1. INFRASTRUCTURE
AND
ECONOMIC
GROWTH
1

2.  INFRASTRUCTURE
 INFRASTRUCTURE DEVELOPMENT ECONOMIC GROWTH
 DEVELOPMENT OVER THE YEARS IN INDIA
 FIVE YEAR PLAN CONTRIBUTION
 CURRENT GOVERNMENT PLANS
CONTENTS
2

3. 3
 Fundamental Facilities and Systems Necessary for an Economy and
Society to Operate
INFRASTRUCTURE
Core
Sectors
Energy
Transport
Commu-
nication
Education
Health
Types of Infrastructure
Economic Infrastructure Social Infrastructure
Roads, Highways, Railroads,
Airports, Seaports
Education
Electricity Health
Telecommunications Housing

4. 4
 “A one percent increase in the stock of infrastructure
is associated with a one percent increase in GDP”
- World Bank, 1994
 Economic Infrastructure Contribution-
 It provides services that are part of consumption bundle of
people
 Large-scale expenditures for public works provide stimulus
to the economy
 Its an input to production to improve output and productivity
INFRASTRUCTURE DEVELOPMENT ECONOMIC GROWTH

5. 5
 Social Infrastructure Contribution-
 Developing qualitative Educational Facilities helps in
enhancing human capital
 schools, universities
 A capable human resource can contribute to the growth of
any economy
 Developing health facilities to care for Public Health
 clean water supply, better sewage facilities, control
of communicable diseases
INFRASTRUCTURE DEVELOPMENT ECONOMIC GROWTH

6. 6
 2nd largest road network in the world
 3rd largest producer of electricity in Asia
 5th largest producer of electricity in the world
DEVELOPMENT OVER THE YEARS IN INDIA
1947-51 2007-11
Total Road Length 0.399 million km 4.24 million km
National Highway 24,000 km 92,851 km
Electricity Generation
Capacity
1,362 MW 2,28,722 MW

7. 7
 1st, 7th, 8th, 10th and 11th – Focused mainly on Infrastructure
 11th plan – planned double spending from 5% to 9% of GDP
 11th plan – 9-10% GDP growth rate for next decade
 12th plan – 130% raise in infrastructure investment (Rs.55,74,692 cr)
 Last decade has seen continuous rise in investment.
FIVE YEAR PLAN CONTRIBUTION

8. 8
2002-2012 INFRASTRUCTURE INVESTMENT

9. 9
 Urban development plans
 Smart Cities
 Metro Rail, Bullet Train Projects
 Airport Terminals
 Sansad Adarsh Gram Yojana
 Make in India – to make India a manufacturing hub
CURRENT GOVERNMENT PLANS

10. INFRASTRUCTURE
AND
ECONOMIC
GROWTH
10
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