Infrastructure development has been recognized as one of the most
important key elements in measuring the index of the standard
of living of the people of a nation. The quality of the
infrastructure available also attracts foreign direct investment to flow
in. `Infrastructure' covers roads, communications, power,
transport, shipping and aviation, health and educationall basic amenities
that make production of goods and services, for domestic and
international consumption relatively less expensive, with improved quality and
at higher levels of productivity.
Investments in infrastructure in India are meager in
comparison with those in China, which in a short time has built a very
attractive infrastructure of high quality, making it a more attractive country
for foreign investment flows in manufacturing and export of
products. Even today, the Government of India regards itself, as the
sole originator of building infrastructure, leaving little elbow room for
the private sector. This approach is changing; but not quickly enough
to make it attractive for private sector to take up infrastructure
projects on their own initiative. The private sector needs to be
incentivized to come into this sector.
In April 2009, infrastructure grew by 4.3% after dipping to 2% during the previous six months. It is
the public spending on construction of projects that creates jobs, boosts rural economy and also creates
something of great value to the nation, which acts as the most vigorous financial stimulus in times of demand
especially during recession like the one we are experiencing now. Investment in infrastructure boosts further
investments in manufacturing. It makes industry more internationally competitive. |
