indian Economics

1. Dr.Laxmi verma
Subject- Indian Economics
Shri Shankracharya Mahavidyalya Junwani
BA-1st year
Topic-infrastructure Development

2. • Infrastructure Sector
• Definitions:
• Infrastructure is a key driver of the overall development of Indian economy.
Infrastructure sector focuses on major infrastructure sectors such as power,
roads and bridges, dams and urban infrastructure.
• “Infrastructure is generally understood as the basic building blocks
required for an economy to function efficiently”.
• The National Statistical Commission headed by Dr. C. Rangarajan,
attempted to identify infrastructure based on some characteristics. The
Rangarajan Commission indicated six characteristics of infrastructure
sectors:

4. Dr. Rakesh Mohan Committee in “The India Infrastructure Report”
included:

5. • Why do Infrastructure Matter for Growth & Development?
• There is, indeed, a plethora of anecdotal and more technical evidence that
suggests development of infrastructure can lead to growth and
development of an economy.
• The argument is particularly true for the developing countries which lack
adequate infrastructure facilities. Intuitively, it should make sense to
assume that the more developed a country is, the higher its infrastructure
facilities and hence the lower the return from additional investment in
roads, railways, ports etc. However, the less developed a country is, the
more likely the infrastructure is to matter, because the returns from the
Infrastructure development will be much more than the cost of the
projects.

6. • Energy Sector
The importance of energy sector especially electricity in promoting
growth and development via human development and physical
development is well known. The single most reason obstructing the
growth of the industrial sector in general and manufacturing in
particular in India is deficiency of continuous power supply
(electricity/electrificatioTelecommunication
Telecommunication
The impact of telecommunication on the growth is found to be
maximum. The availability of fixed line phones and mobile phone
penetration have effectively transformed the Indian economy and has
given boost to Businesses like BPOs and KPOs (Knowledge Processing
Outsourcing).n) to run factories.

7. • Transport
• For developing countries like India, the estimated growth effects of
transport investments have been very strong. This has been a
common finding in research over the last 20 years or so. This is not
surprising since the transport facilities in India are weak. The main
impact of improved transportation facilities on the development has
to come from quality, from addressing bottlenecks or from capturing
new network or suprational effects which have not been internalized
in older designs of the transport networks.
• In fact, studies have found, that for most of the developing countries,
the construction of Roads, Railways, Highways, Airports and Sea Ports
have contributed positively towards increasing growth.