Infrastructure In Economic Development

1455 Words6 Pages
The prosperity of a country depends directly upon the development of agriculture and industry. Agricultural production, however, requires irrigation, power, credit, transport facilities, etc. Industrial production requires not only machinery and equipment but also skilled manpower, management, energy, banking and insurance facilities, marketing facilities, transport services which include railways, roads, and shipping, communication facilities, etc. So, Adequate quantity, quality and reliability of infrastructure are key to the growth of any economy. All these facilities and services that help in industrial and agricultural production constitute collectively the infrastructure of an economy. The availability of appropriate infrastructure…show more content…
High transactions costs arising from inadequate and inefficient infrastructure can prevent the economy from realizing its full growth potential regardless of the progress on other fronts. In this we have two infrastructure facilities such as (i). Physical infrastructure facilities, and (ii). Social infrastructure facilities. The performance of infrastructure is largely a reflection of the performance of the economy. Infrastructure industries are measured by six key infrastructure and core industries (i.e. electricity, coal, steel, crude oil, petroleum products and cement) In this paper, the overall growth and performance of Infrastructure Service Sector on 60 Years of Indian Economic Development has been examined in depth on the basis of the different parameters. The parameters like Trends in growth of physical output in Railways, Telecommunications and Power are used to examine whether there is a Positive or Negative association between infrastructure development and India’s 60 years of economic…show more content…
These schemes have made some progress in the quality of life in urban areas though the magnitude of the problem of urbanization demands faster and larger interventions in the urban areas. Municipal Corporations and Municipalities who fund their requirements largely by loans and grants from Central and State Governments provide most urban infrastructure services. In order to supplement the efforts of urban development, the Government of India has depended upon the following agencies: • Life Insurance Corporation of India (LIC) which invests in urban infrastructure projects – like water supply, drainage, housing, power and transport as a part of its statutory requirements; • The Housing and Development Corporation Ltd., (HUDCO) is given the task of financing urban infrastructure. HUDCO provides infrastructure loans to State Urban Finance Corporations, Water Supply and Sewerage Boards, Municipal Corporations, Improvement Trusts, etc; and • The Infrastructure Leasing and Financial Services Ltd. Which also finances urban infrastructure
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