Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading…
Transcript

INFRASTRUCTURE AND ECONOMIC GROWTH AND DEVELOPMENT IN INDIA

  • Introduction
  • Why this topic?
  • Research Methodology
  • Concept and Definition
  • Role of Infrastructure in the economic development of India
  • Relationship between Infrastructure and Economic Growth
  • Infrastructure development under Five Year Plans
  • Impediments to the growth of infrastructure in India
  • India and China on the infrastructure front
  • Chinese lessons
  • Innovative solutions
  • Conclusion

  • Infrastructure-The prerequisite for the development.
  • A public good and also a source of external economies.
  • Studies-

a) A positive relationship between the level of economic development and quality of housing & access to basic amenities.

b) Focused on either of the services under infrastructure.

  • Dearth of literature in Indian context.
  • Present research study- An attempt to take a holistic view for understanding the positive correlation between the two.

“The link between infrastructure and development is not a once for all affair. It is a continuous process and progress in development has to be preceded accompanied and followed by progress in infrastructure, if we are to fulfil our declared objectives of a self-accelerating process of economic development”.

"SOC (infrastructure) is usually defined as comprising of those basic services without which primary, secondary and tertiary activities cannot function. In its wider sense, it includes all public services from law and order through education and public heath to transportation, communications, power and water supply, as well as such agricultural overhead capital as irrigation and drainage system. The hard core concept can probably be restricted to transport and power.”

  • Increases Agricultural Production and Productivity.
  • Accelerates Industrial Growth.
  • Increases the Flow of Foreign capital.
  • Generates Employment Opportunities.
  • Contributes to Domestic Market Development.
  • Assists to Reduce Poverty.
  • Contributes to Development of Backward Region.
  • Instrument of Social change.

  • Infrastructure development is of two types-

a)Demand driven

b) Supply driven.

  • Demand driven infrastructure- must for development.
  • Supply driven infrastructure- desirable but not a must.

  • Infrastructure works directly and indirectly on a number of determinants of economic development.

The demand side-

a) Opens up possibilities of investment.

b)Opening up the size of the market.

c)Increasing the supply elasticity and efficiency of factors of production.

The supply side-

a)Development of infrastructure helps in mobilizing potential saving.

b)Channelizing them into productive investment.

INFRASTRUCTURE DEVELOPMENT UNDER THE FIVE YEAR PLANS

  • Realisation of The role & the responsibility to develop infrastructure to borne by the State due to-

a)Indirect profits.

b)Reluctance to invest private capital.

c)Long gestation period.

d)Operational losses.

  • Based on it successive five year plans were formulated.

  • Infrastructural sectors claimed the lion’s share of plan outlays in the initial five year plans.
  • Twelfth Plan intends - Continue increasing the pace of investment in infrastructure.

  • Critical for sustaining and accelerating growth.

  • Public investment- A dominant form of infrastructure financing in India.

  • Investment from the private sector also increased.

  • Targeted to achieve 50% private and PPP funding in total infrastructure investments, 30% in the11thPlan.

  • Financing.
  • Land Acquisition.
  • Regulatory Framework.
  • Delay in Clearances & Implementation.
  • Slack Capacity.
  • Uneven Private Participation.
  • Governance Related Constraints.
  • Efficient Pricing of Infrastructure.

NIRANJAN HIRANANDANI, 

INDIAN ENTREPRENEUR, CO FOUNDER AND MANAGING DIRECTOR OF HIRANANDANI GROUP

Narendra Modi has conveyed his aspirations: To build national highways, have bullet trains, improve water availability and provide education. And he is walking the talk by preparing the necessary wherewithal to get things executed. He is trying to replicate the Gujarat model [of developing industry and creating jobs] across India. The question is whether he can do it as fast as he desires. There is a visible change in attitude towards investment [with Japan willing to fund the Rs 55,000 crore Mumbai-Ahmedabad bullet train project]. Modi’s official trip to the US and Chinese president Xi Jinping’s visit to the Sabarmati riverfront are also key pointers. The PM is marketing India to boost investment and funding. Of course, there would be hiccups along the way, but I believe we would be successful.

INDIA AND CHINA ON THE INFRASTRUCTURE FRONT

  • In October 2014, the International Monetary Fund projected that India’s economic growth rate would surpass China’s by 2018.

  • A closer look at the economies at both countries indicates that across key areas such as:

a) Infrastructure investments.

b) Exports.

c)Research & development spending.

d)Industrialisation.

e)International reserves.

  • India lags a decade behind China, with its current position across these indicators similar to that of China in the early 2000s.

THE INDIAN AND CHINESE ECONOMIES: A COMPARISON ON THE BASIS OF INFRASTRUCTURE INVESTMENT:

LESSONS FROM CHINA

  • Start with Small Farmers and Rural Areas.
  • Invest Heavily in Knowledge Infrastructure.
  • Build a Competent Government Committed to Inclusive Development.
  • Pave the road to riches-literally.
  • Test Before Rollout.
  • Focus on Gradually Reworking Incentives and Removing Obstacles to Growth.
  • Use Financial Markets to Promote.
  • Development and Stability.
  • Use Policy to up Competitiveness.
  • Promote Self-Reliance.

“Entry of foreign players needs to be viewed as a positive development to add value and state-of-the-art technology to our highway projects. These firms will bring with them greater expertise in areas of highway construction technology, project management, project implementation and monitoring expertise as well as technology transfer. The resultant benefits include savings in cost, time and improved quality of works, to the benefit of all.”

-Quote from a Government representative

“Expanding investment in infrastructure can play an important counter cyclical role. Projects and programmes [are] to be reviewed in the area of infrastructure development, including pure public private partnerships, to ensure that their implementation is expedited and does not suffer from [the] fund crunch.”

-Dr. Manmohan Singh, Former Indian Prime Minister,

(Quoted in newspaper reports, October, 2008)

“Reviving the economy and growth is our main agenda and our prime focus is going to be clearly on infrastructure and the manufacturing sector. It will not only encourage investment, but will also produce the required employment opportunities."

REFERENCES:

  • Straub, S. 2008. Infrastructure and Development: A Critical Appraisal of the Macro Level Literature, World Bank Policy Research Working Paper No. WPS4590.

  • Tewari, R.T.1984. Economic Infrastructure and Regional Development in India, Man and Development, 6(4).

  • The World Bank. 2006. Infrastructure at The Crossroads: Lessons From 20 Years Of World Bank Experience, Washington DC, The International Bank for Reconstruction and Development / The World Bank.

 

  • The World Bank. 2008. World Bank Group Sustainable Infrastructure Action Plan Fiscal Years 2009-2011. Washington, D.C, The International Bank for Reconstruction and Development / The World Bank.

 

  • Willoughby, C. 2004. "Infrastructure and the Millennium Development Goals." Complementarity of Infrastructure for Achieving the Millennium Development Goals. Berlin, United Nations, p.p. 1-33.

  • World Economic Forum. 2010. The Global Competitiveness Report 2010–2011. Geneva, World Economic Forum.

  • http://greaterpacificcapital.com/indias-journey-to-economic-power-based-on-the-most-important-lessons-from-china/.

  • Mishra and Puri 2009. Indian Economy

  • Montgomery, Elizabeth. 2008. Infrastructure in India A vast land of construction opportunity PricewaterhouseCoopers, Sep., p.p. 6-10.

  • Munnell, Alecia H. 1990. How Does Public Infrastructure Affect Regional Economic Performance? New England Economic Review, Sep., p.p. 11-33.

 

  • Nataraj, Geethanjali, 2013, Infrastructure Challenges in India: The Role of Public-Private Partnerships, Indian Institute of Economic Growth

 

  • Shah, Narottam. 1970. Overall Summary: Infrastructure for the Indian Economy. In Dagli, Vadilal (ed.) Infrastructure for the Indian Economy.

 

  • Duffy-Deno, K.T. & R.W. Eberts. 1989. Public Infrastructure and Regional Economic Development: A Simultaneous Equation Approach, The Federal Reserve Bank of Clevel and Working Paper No. 8909.

  • Hirschman, A.O. 1958. The Strategy of Economic Development, New Haven, CT, Yale University Press.

 

  • Hulten C.R., Bennathan E. and S. Srinivasan . 2006. Infrastructure, Externalities, and Economic Development: A Study of Indian Manufacturing Industry, Mimeo, World Bank.

 

  • Kaplan, S.D. 2014. Development with Chinese characteristics: Ten lessons for policymakers. GREAT insights Magazine, Volume 4, Issue 1. December 2014/January 2015.

 

  • Mera, K. 1975. Income Distribution and Regional Development, University of Tokyo Press.

  • Aschauer, David A. 1990. Highway Capacity and Economic Growth: Concepts and Evidence, Economic Perspectives, Federal Reserve Bank of Chicago, Sep., p.p. 14-24.

 

  • Asian Development Bank (ADB), 2011.Facilitating Infrastructure Development in India: ADB’s Experience and Best Practices in Project Implementation, Mandaluyong City, Philippines.

 

  • Dadibhavi, R.V. 1991. Disparities in Social Infrastructural Development in India: 1970-71 to 1984-85, Asian Economic Review, 33 (1).

 

  • Delmon, J. 2008. Private Sector Investment in Infrastructure: Project Finance, PPP Projects and Risk, Alphen aan den Rijn, Netherlands, Kluwer Law International.

 

15TH AND CURRENT PRIME MINISTER OF INDIA

INFRASTRUCTURE:

INFRASTRUCTURE DEVELOPMENT UNDER THE FIVE YEAR PLANS

DEFINITION:

  • Inadequate infrastructure - A constraint for rapid growth.

  • Emphasis on the need for massive expansion on investment.

  • On a combination of public and private investment.

ROLE OF INFRASTRUCTURE IN THE ECONOMIC DEVELOPMENT OF INDIA

Albert O. Hirschman

RELATIONSHIP BETWEEN INFRASTRUCTURE & ECONOMIC GROWTH

  • Aim of the planning process- Offer quality of life to its citizens.

  • Building up of a much wider base of infrastructure- sine qua non of development in India after Independence.

CONCLUSIONS

RESEARCH METHODOLOGY

"The development of India’s infrastructure presents a huge task as well as a huge opportunity."

RATIONALE BEHIND THE STUDY

Dr. Jeffrey Delmon

WILLOUGHBY, 2004

A senior infrastructure specialist of The World Bank, begins his book indicating that, “Poor infrastructure impedes a nation’s economic growth and international competitiveness (World Bank, 2006).

Insufficient infrastructure also represents a major cause of loss of quality of life, illness and death.

Since the present study has taken a composite view on infrastructure it is based only on the secondary data, collected from the different sources like World Development Reports majority of data and literature collected from the existing growth theories, empirical studies, books, and research articles.

PPP:

FDI :

INNOVATIVE SOLUTIONS

Contents

  • CERTIFICATE PROGRAMME FOR COMMERCE AND ARTS (CPCA)

  • SUBMITTED BY

KARAN M. KHILWANI

  • UNDER THE GUIDANCE OF

DR. HIRAL SHETH

(ASSISTANT PROFESSOR)

K.C. COLLEGE

IMPEDIMENTS TO THE GROWTH OF INFRASTRUCTURE IN INDIA

Introduction

INFRASTRUCTURE

CONCEPT : INFRASTRUCTURE

INFRASTRUCTURE

Economist

Dr. V.K.R.V. Rao

  • Originated in 19th century in France.
  • Used to refer primarily to military installation.
  • DIvided into two parts, viz., social and physical infrastructure.
  • Often described as social overhead capital (SOC) in Economics to distinguish it from directly productive capital (DOC).

  • The pre requisite.
  • Modernization and commercialization of agriculture.
  • Investment directly affects the economic development.
  • World Development Report (1994).
  • The Global Competitiveness Report 2010-2011.

Learn more about creating dynamic, engaging presentations with Prezi