Infrastructure plays a key role in economic development by enhancing productivity and reducing costs. It includes transportation, communications, water, power and public institutions. Major infrastructure projects in India include expanding power generation to 400,000 MW by 2022, growing oil and gas reserves, and increasing telecom subscribers. Strong infrastructure is essential for India to sustain high growth rates and become a large global economy.

1. Role of Infrastructure in Development

2. Presentation Structure
 Definition of Development
 Definition of Infrastructure
 Example of International and local Infrastructure project
 The impact of Infrastructure on Development
 Infrastructure Development in India
 Role of Infrastructure in Economic Development in India

3. Definition of Development

4.  Economic development is fundamentally about enhancing the
factors of productive capacity - land, labor, capital, and
technology
of a national, state or local economy
 By using its resources and powers to reduce the risks and costs
which could prohibit investment, the public sector often has been
responsible for setting the stage for employment-generating
investment by the private sector.

5. Definition of Infrastructure

6.  The basic facilities, services, and installations needed for the
functioning of a community or society, such as transportation
and communications systems, water and power lines, and public
institutions including schools, college,hospital,post offices etc.
 Modern day thinking suggest that other forms of infrastructure
exists, these include Technology and Human infrastructure.
 Technology infrastructure consists of science, engineering, and
technical knowledge available to the nation’s industries.
 Human infrastructure consider education and training as a form
of investment that will generate future benefits

7. Example of International and local
Infrastructure project

8.  To gain a better appreciation of the various types of physical
infrastructure we can briefly review various infrastructure projects
 We will look at three International and three Local Physical
Infrastructure Projects

9. International Infrastructure projects

10. The top 10 construction achievements of the 20th Century are:-
1. Chunnel Tunnel.
2. Golden Gate Bridge
3. Dwight D. Eisenhower System of Interstate and Defense Highways
4. Empire State Building
5. Hoover/Boulder Dam
6. Panama Canal.
7. Sydney Opera House.
8. Aswan High Dam
9. World Trade Center
10.Chek Lap Kok Airport in Hong Kong.
Of these projects I have selected the Tunnel, Golden Gate Bridge and
the Panama Canal for review.

11. International Infrastructure projects-The Tunnel
 The opening of the Channel Tunnel in 1994 turned
the centuries old dream of a fixed link between the
UK and mainland Europe into a reality
 The average depth of the tunnel is around 150 feet
under the seabed
 It consists of two single-track railway tunnels and a
central service tunnel used for safety and services
 There are three different tunnels that make up the
Chunnel. It consists of two single-track railway
tunnels and a central service tunnel used for safety
and services
 The tunnels are used for both freight and passenger
traffic
 The three tunnels combined make up 95 miles of
tunnels dug by nearly 13,000 engineers, technicians,
and workers.

12. International Infrastructure - The Panama Canal
 The Panama Canal crosses the Isthmus of Panama,
in Central America, and allows vessels to travel
between the Pacific and Atlantic oceans
 The waterway measures 64 km (40 miles) and
enables vessels to avoid travelling around South
America, thereby reducing their voyages by
thousands of miles and many days
 It was built by the United States from 1904 to 1914
 It was the largest and most complex project ,
employing ten thousands of workers. Total cost to
date has been approximately US$11.52

13. International Infrastructure – Golden Gate Bridge
 The Golden Gate Bridge is a 1.7 mile-long suspension
bridge that took over four years to build and links San
Francisco with Marin County
 The Golden Gate Bridge was opened to vehicular
traffic on May 28, 1937.
 The bridge's two towers rise 746 feet and the bridge
crosses Golden Gate Strait which is about 400 feet
 The Golden Gate Bridge was completed at a
construction cost of US$438M in 2002 dollars.

14. Local Infrastructure Projects

15. Local Infrastructure – National Highways of India
 The National Highways Network of India, is a
network of highways that is managed and
maintained by agencies of the Government of India
 These highways measured over 70,934 km as of
2010, including 15,000 plus km are 4 or 6 laned and
remaining are 2 laned
 The National Highways Authority of India (NHAI) is
the nodal agency responsible for building,and
maintaining most of the national highways network
 It operates under the Ministry of Road Transport
and Highways

16. Local Infrastructure – Ports
 India has a long coastline, spanning 7516.6
kilometres, forming one of the biggest peninsulas
In the world
 There are also 7 shipyards under the control of the
central government of India, 2 shipyards controlled
by state governments, and 19 privately owned
shipyards
 The major ports handled 423.4 million tons of
cargo for the financial year 2005-2006, with
Vishakhapatnam, Kochi, Paradip Port, Chennai
Port and Kandla carrying the greatest tonnage

17. The Impact of Infrastructure on
Development

18. The Impact of Infrastructure on Development
Note that the examples of infrastructure that have been presented so far only
represent a small subset of the possible types of infrastructure projects.
Infrastructure as noted in our earlier definition includes:
 Transportation systems
 Communications systems
 Water supply
 Power supply
 Public institutions
• Post Offices
• Fire Stations
• School
• Parks

19. The Impact of Infrastructure on Development
 Research on the impact of infrastructure on growth has concluded
that the role of infrastructure in growth is substantial, significant and
frequently greater than that of investment in other forms of capital
projects.
 Infrastructure services, such as power, transport
telecommunications,
provision of water and sanitation are central to the activities of
households and to economic production.
 Infrastructure represents the wheels of economic activity and is used
in the production process of nearly every sector. Transport, for
example, is an input for every commodity, while our very lives, let
alone economic activity,would be impossible without water.
 Users demand infrastructure services not only for direct consumption
but also for raising their productivity.

20. The Impact of Infrastructure on Development
 Infrastructure covers many sectors and can collectively represent a large
share of a country’s economy.
 Infrastructure typically represents about 20% of total investment and 40-
60% of public investment in most developing countries.
 Public infrastructure investments range from 2-8% of GDP

21. Infrastructure Development in India

22. Infrastructure Development in India- Power Sector
 The power in India growth from the present generation
capacity of 2,00,000 MW to 4,00,000 MW by 2022
the terminal year of the 13th Five-Year plan
 All sources of energy conventional coal, hydro,
solar, and nuclear are all bound to grow
simultaneously in the coming years due to the well
enunciated policy issues by the Govt
 China is a $ 8 trillion economy today and America a
$ 16 trillion economy. India will definitely grow and if
the economy grows at 5 per cent the power sector
has to grow at 7 to 8 per cent.

23. Infrastructure Development in India- Oil and Gas
 India 5th
largest consumer of energy
 About 5.7 billion barrels of proven oil reserve
 FDI worth us$ 3332.78 million during April 2000 to
December 2011

24. Infrastructure Development in India- Telecommunication
 3rd
largest in the world and 2nd
largest in Asia
 Mobile subscriber base 936.12 million
 Broadband subscriber 13.42 million

25. Role of Infrastructure in Economic
Development in India

26.  In the late 2000s, India's growth reached
7.5%, which will double the averag income
in a decade. It say that if India pushed
more fundamental market reforms, it could
sustain the rate and even reach the
government's 2011 target of 10%.[
 The annualized 1999–2008 growth rates for Tamil Nadu
(9.8), Gujarat (9.6%), Haryana (9.1%), or Delhi (8.9%)
were significantly higher than for Bihar (5.1%),India is the
tenth-largest economy in the world and the third largest
by purchasing power parity adjusted exchange rates
(PPP). On per capita basis, it ranks 140th in the world