Tuesday, December 12

Infrastructure And Economic Development

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A nation’s infrastructure development plays a important role in its economic growth. A fast growing economy warrants an even faster development of infrastructure.Along with Independence,  India inherited famine and poverty from its colonial rulers.

There was dire need for housing, health facilities, education, roads, power, irrigation projects and drinking water facilities for millions of underprivileged people. This called for proper economic planning.Unfortunately, the task of planning fell into the hands of those who were rich and powerful. There for The outcome was that they lost sight of the main objective of planning the economy. It created economic inequalities

The cities shelter around 30 per cent of the population who contribute to the economic growth.However, the most important part of economic growth, which is infrastructure, hardly matched the demands of even this 30 per cent of urban dwellers, spreading chaos at the slightest provocation with the danger of turning the clock backwards.

The Chinese success stories are told and retold by many. Can India set her standards by looking at China?According to a recent newspaper report, when India completed 6000 km of her Expressways in six years, China had done 40,000 km within that time. The fast growth of this Socialist country is extremely relevant.

There is a cost factor involved in developing the country’s infrastructure. Funds are required and so is innovation. The government should allow private participation in this area.One successful Example is the model city coming up near Gandhinagar-the capital of Gujarat It is being built under private entrepreneurship

The above discussion can be summarised under the following list of do’s and don’ts.

  1. Have a proper vision for growth       

  2. Plan for the long-term       

  3. Give innovative ideas a chance  

  4. Remove unnecessary controls and roadblocks                    

  5. Leave all doors open so that corruption is kept away

  6. Review and adjust the demand / supply position of infrastructure from time to time.                                                                                                                                                                                                                                                                                                                                                                                                                                                               

The country’s economy has spread its wings. However, for it to truly take off, the country has to improve infrastructure. One can speed up the process, by revising, revisiting andupgrading the development plans with a long-term view.

Yes, one has to firmly believe that reforms are the pre-requisite for growth and reforming infrastructure sustains growth.Who does not want to see a double-digit growth rate of the GDP in the near future?

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