What Is Infrastructure?
A country needs some basic amenities and services to function properly. Without these, the life of the citizens and the smooth work of the businesses cannot happen. These amenities and services are called Infrastructure as a whole. To term service as infrastructure, you have to see if that service has some kind of physical aspect. For example, the transport service includes buses, bus stands, petro pumps etc. So we can call the whole service as transport infrastructure. Without a group of infrastructure, our life would come to a standstill.
Importance of Infrastructure
A country cannot transition to a developed nation if she has poor infrastructure. It is the infrastructure that helps the industries, businesses, farms and shops to work without any obstruction. If someday you decide to set up a car manufacturing unit, your plan will fail if the road near the manufacturing is not developed. It is like you bring raw materials to your unit and your unit cannot send finished products to the market.
One infrastructure is linked to other infrastructure and services. So the lack of one can hurt the other. For example, if a nation does not have adequate mining infrastructure, it cannot mine an adequate amount of coal. As a result, the power supply infrastructure will face trouble. Lack of adequate power supply, in turn, can lead to huge problems in other sectors. So when a government or private entity decides to improve infrastructure, it will not help the things that are directly connected. It will have a domino effect.
Infrastructure does not just help businesses, it can impact the personal lives of the citizens. A place where there is no hospital will see a rise in the mortality rate. A place where there are enough schools and colleges will help in improving the literacy rates. A place with excellent power supply will provide its citizens with a higher living standard.
Infrastructure In India
Post Independence
To discuss the infrastructure development in India, it is necessary to shed light on what condition the British left India when they were forced to return to their country. Shashi Tharoor in his book - An Era of Darkness: The British Empire In India says, “In 1600, when the East India Company was established, Britain was producing just 1.8% of the world’s GDP, while India was generating some 23%. By 1940, after nearly two centuries of the Raj, Britain accounted for nearly 10% of world GDP, while India had been reduced to a poor ‘third-world’ country, destitute and starving, a global poster child of poverty and famine.”
So in 1947, India could be considered a poor nation. As far as the infrastructure is considered, a developing nation must build basic or primary infrastructure. Thus the First Five Year Plan concentrated on building irrigation, agriculture and energy. Along with that, the planners had the foresight to include communication, education (IITs) and transport in the infrastructure enhancement planning.
The Run-Up to the Liberalisation
Once the primary infrastructure development was set in motion, the government took more ambitious plans like setting up the Atomic Energy Commission of India. The second and third Five Year Plan put into motion rapid industrialisation. However, the wars with China and Pakistan derailed the infrastructural reforms to a large extent. These wars taught the government to invest in defence-related infrastructure.
The Liberalisation of the 1990s
Even though adequate planning was done, the economy of India was in shambles. The infrastructure development stagnated. The government realised that it is necessary to release the monopoly that it had over many sectors. Finally, the Narasimha Rao government opened the doors of India to the foreign players allowing 51% foreign equity participation. This led to the influx of new technologies and greater experience. The Economic Liberalisation, along with the Public-Private-Partnership, helped immensely in India’s infrastructure growth. For example, the telecom sector was reeling under government monopoly. When it was opened up to the private players, the sector saw huge growth and this helped in establishing an acceptable telecommunication infrastructure in India.
Energy Infrastructure in India
The textbook has excellent information on energy infrastructure. To have a future of infrastructure in India, the energy sector, particularly the Power Sector needs an overhaul. The current government of India is doing all in its capacity to do that. India relies on legacy power infrastructure. This results in poor electric supply along with huge losses for the electricity boards. On the other hand, people also think that they are paying more for electricity consumption. The Modi government has invested $35 billion to upgrade the energy infrastructure in India.
Health Infrastructure In India
When it comes to health, India is divided into two categories: rich and poor. The rich people have access to private hospitals. The private healthcare infrastructure in India is by and large acceptable. However, it is not possible for poor people to afford the services of private hospitals.
The public hospitals on the other hand are poorly maintained. In 2015, India spent just 1% of the GDP on public health infrastructure. Lack of doctors and nurses, negligent attitude from the government and doctors’ aversion towards joining public hospitals contribute to the unfortunate condition of the public hospitals.
Urban Infrastructure In India
Amid all the reports of gloom, the good news is that the Urban Infrastructure in India is quite acceptable. According to a survey conducted by GIIA-Ipsos Global Infrastructure Index 2019, 57% of the urban Indians feel that the infrastructure conditions are good.
However, upgrades need to be done in order to make the Urban infrastructure in India environment friendly. Nuclear power, solar power, electric vehicles, e-waste management etc. should be addressed much more effectively. The future infrastructure projects in India must take into account global warming concern while being planned.
Did You Know?
The ‘infra’ in infrastructure comes from the Latin word which means under or below. Does that mean we should consider only those structures that are built from within the ground as infrastructure? No? What infra means here is ‘underlying’ not just under. It’s logical. Infrastructure is the underlying support that the non-tangible things like quality of life, education, health etc. can get.
FAQs on Infrastructure in India: Development and Challenges
1. What are the main types of infrastructure in India, as per the NCERT syllabus?
Infrastructure in India is broadly divided into two main categories:
- Economic Infrastructure: These are facilities that directly support economic production and distribution. Examples include transport (roads, railways, ports), energy (power plants, grids), and communication (telecommunication networks).
- Social Infrastructure: These are facilities that enhance human capital and improve the quality of life, which indirectly contributes to economic development. Examples include schools, colleges, hospitals, and public housing.
2. What is the importance of infrastructure for a country's economic development?
Infrastructure is crucial for economic development as it increases the productivity of the factors of production and improves the quality of life. A well-developed infrastructure network attracts foreign investment, facilitates trade and commerce by reducing transport and logistics costs, generates employment, and ensures that the benefits of growth reach all sections of society.
3. What are the primary challenges affecting infrastructure development in India?
The key challenges hindering infrastructure development in India include:
- Inadequate Financing: Infrastructure projects require massive long-term investment, which is often difficult to secure.
- Implementation Delays: Issues like land acquisition, environmental clearances, and political hurdles often cause significant delays.
- Low Quality and Poor Maintenance: A lack of focus on quality control and regular maintenance leads to faster deterioration of assets.
- Regional Disparities: Infrastructure development is often uneven, with rural and remote areas lagging significantly behind urban centres.
4. How does an investment in social infrastructure like health and education contribute to a country's economic growth?
Investing in social infrastructure is fundamental to economic growth because it leads to human capital formation. A healthy and educated population forms a more productive, efficient, and skilled workforce. Better health standards reduce productivity loss due to illness, while education fosters innovation and adaptability, which are essential for a modern, growing economy.
5. What are some of the major issues currently affecting India's energy infrastructure?
India's energy sector, a key component of economic infrastructure, faces several critical issues. These include an installed capacity that is insufficient to meet the rapidly growing demand, leading to power cuts. Additionally, there are significant Transmission and Distribution (T&D) losses due to technical faults and theft, and many state electricity boards run at a loss, hindering their ability to invest in upgrades.
6. Why are Public-Private Partnerships (PPPs) becoming increasingly important for infrastructure projects in India?
Public-Private Partnerships (PPPs) are crucial because the government alone cannot meet the massive financial requirements for infrastructure development. PPPs leverage the efficiency, technology, and capital of the private sector while retaining public accountability and oversight from the government. This model helps to bridge the funding gap, accelerate project completion, and improve the quality of service delivery in sectors like roads, ports, and power.
7. Besides financing, what are some of the key policy-related challenges hindering infrastructure projects in India?
Beyond the challenge of securing funds, major policy-related hurdles include complex and often slow regulatory approval processes, especially for environmental clearances. A lack of a stable and predictable policy framework can deter long-term private investment. Furthermore, issues related to land acquisition, including compensation and rehabilitation of displaced people, frequently lead to legal disputes and significant project delays.
