2. Infrastructure
• Infrastructure is basic physical and organizational structures
needed for the operation of a society or enterprise or reproductive
system , or the services and facilities necessary for an economy to
function. It can be generally defined as the set of interconnected
structural elements that provide framework supporting an entire
structure of development. It is an important term for judging a
country or region's development.
• Keynesian economics, the word infrastructure was exclusively
used to describe public assets that facilitate production, but not
private assets of the same purpose..
• Infrastructure plays an important role in the
economic development of an economy . It can
quicken or impede the development of an
economy .
3. Infrastructure in India
• India is the fourth largest economy in the world.
However, one factor which is a drag on its
development is the lack of world class infrastructure.
Estimates suggest that the lack of proper
infrastructure pulls down India’s GDP growth by 1-2
per cent every year. Physical infrastructure has a direct
impact on the growth and overall development of an
economy. But, the fast growth of the Indian economy
in recent years has placed increasing stress on physical
infrastructure, such as electricity, railways, roads,
ports, airports, irrigation, urban and rural water
supply, and sanitation, all of which already suffer from
a substantial deficit
4. 1. Quality of existing infrastructure
2. Economic environment
3. Ease of doing business
4. Political/social environment
5. Availability of finance/financial environment
5. Core Sector of Infrastructure
• Energy
• Transport
• Communication
• Education
• Health
8. Role of Infrastructure in development
• Contribution to National Income
• Employment Generation
• Urbanization
• Attract FDI , PPP Initiatives
• Capital Formation
• Rural development
• Entrepreneurship
10. Problems in Indian Infrastructure
• Land acquisition
• Funding constraints
• Post-award changes in the
scope of the project
• Poor planning and execution
• Delays in clearances
• Population
11. India Vs China
• India expects to invest about $500 bn in infrastructure, mainly in power,
telecommunication, roads, railways and oil pipelines, in the five years ending March
2012.
• India will need to spend more than $1 trillion on infrastructure from 2010 to 2019, with
roads requiring $427 billion, power $288 billion and railways $281 billion, according to
Goldman Sachs.
• 7.5 percent of GDP is invested in infrastructure, with plans to increase that to about 10
percent at the end of the 2008-2012 five-year plan.
• Private investment is likely contribute 36 percent to total infrastructure investment by
2008-2012 five-year plan, up from 25 percent from the 2002-2007 period
India will issue tax-free infrastructure bonds with a minimum tenure of 10 years, which
will have the potential to raise about $6.5 billion in fiscal year 2010/11
•
• China's Infrastructure
• China spends 11% of its GDP on infrastructure.
• Spending on infrastructure has been increasing at rate of around 25 percent a year in
recent years.
• 38% of China's huge 2008-9 economic stimulus package will go towards public
infrastructure projects, including railway, road, irrigation, and airport construction.
• China budgeted 80 billion yuan (US$11.8 billion) on transportation infrastructure in 2010.
• 170 new mass-transit systems could be built in China by 2025.
12. Recent Infrastructure Development
• Government approved National Telecom Policy (NTP) 2012
• Increase rural tele-density from the current level of around
39 to 70 by the year 2017 and 100 by the year 2020
• Metro Rail Projects
• PPP initiatives
• Delhi-Mumbai and Delhi-Howrah Freight Corridors.
Task Force on Financing Plan for
• Airports.
Inter-Ministerial Groups on Custom
Procedures and Functioning of Container
FreightStation and Ports
13. Conclusion
• India needs to urgently bridge the
infrastructure gaps that industry and people
face every day. The slow pace of infrastructure
development is quite evident from the list of
eleventh plan targets that are unmet. MSMEs
that provide employment to 60 million people
in the country are the worst-hit by the delay.
Lack of adequate power supply and transport
infrastructure proves to be a deterrent to the
growth of this sector.
