Infrastructure in IndiaPresented by Shubham Jain

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 .

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

1. Quality of existing infrastructure2. Economic environment3. Ease of doing business4. Political/social environment5. Availability of finance/financial environment

Core Sector of Infrastructure

• Energy• Transport• Communication• Education• Health

Economic Benefit of Infrastructure

Role of Infrastructure in development

• Contribution to National Income • Employment Generation• Urbanization• Attract FDI , PPP Initiatives• Capital Formation• Rural development• Entrepreneurship

Trends of Infrastructure Development in India

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

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.

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

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.

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