Limited Infrastructure

Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating[0/5]Total Votes [  ]  
Rate this page:
Limited Infrastructure growth of India is characterized by the long gestation period and problems like power demand shortfall, traffic capacity mismatch, poor road conditions as only half of the country's roads are surfaced, and low telephone penetration. The rapid economic growth of the last few years has put heavy stress on India's infrastructural facilities. There exists considerable variation in the levels of infrastructure at the district level as well as in terms of infrastructure components at different levels. However, substantial intra-state disparity in the levels of infrastructure and its components exists, with such intra-state disparity in infrastructural facilities being lower in states with higher average levels of infrastructure.

The role of infrastructure in fostering economic growth and enhancing public welfare is more pronounced in developing economies like India. At the time of independence, the national government was unanimous in accepting that a much wider base of infrastructure was necessary for economic development of this country. The complete agreement ruled out the need for any debate on this issue and it was taken for granted that infrastructure sector of India needed both large scale action and disbursement of funds.

There has been a remarkable growth in the absolute level of such facilities, as well as in the level relative to the size of the nation and population. However, there has been Limited Infrastructure growth regarding the efficiency, quality and financial viability, if not poor. A major aspect of this issue has been the wide regional variation in the availability of infrastructural facilities. This has often increased regional disparities in socio-economic development and stressed the necessity for an integrated regional development programme. There are examples of Limited Infrastructure in the form of regional disparity in infrastructural facilities in India, not only among the states, but within states also.

Seven states of India namely Andhra Pradesh, Gujarat, Haryana, Karnataka, Orissa, West Bengal and Maharashtra have approached the Center for setting up of special economic and investment regions in their region in order to check the further advancement of Limited Infrastructure. All these states require world-class infrastructure facilities such as wide roads, railways and port connectivity. The Prime Minister, Dr Manmohan Singh, had constituted a Task Force on Petroleum, Chemicals and Petrochemicals Investment Regions that would enable speedy and organized decision-making to attract foreign investments in the petrochemicals sector. The policy initiative on the lines of special economic region could also be extended to other sectors to overcome Limited Infrastructure.

Regarding the reasons behind the Limited Infrastructure growth in India, there are different causes for each sector. For instance, a large number of unorganized players and lack of a structured and professional approach limits the development of the construction industry in the country. In the Health Care segment, stagnant public spending on health have placed India among the bottom 20 percent of countries. Further while the personalized motor vehicle industry has seen substantial influx of new technology, truck and bus manufacturing has a clear and urgent need for a major technology upgrade.

Last updated On: 7th May 2011

>> More about India Budget