infrastructural need for india

INFRASTRUCTURAL NEED FOR INDIA

BY:- AQIB KHAN

INTRODUCTION

• Infrastructure is the basic physical and organizational structure needed for the operation of a society or enterprise ,or the services and facilities necessary for an economy to function

• 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.

PROBLEMS IN INDIAN INFRASTRUCTURE

• Land acquisition

• Funding constraints

• Poor planning and execution

• Delays in clearances

• Population

RECENT INFRASTRUCTURE DEVELOPMENT

• Mumbai's Eastern Freeway - India's second largest flyover

• India's first solar park at Charanka village in Gujarat

• Chenab bridge

• Yamuna Expressway

• Banihal-Qazigund tunnel

• GIFT City in Gujarat

ROLE OF INFRASTRUCTURE IN DEVELOPMENT

• Contribution to National Income

• Employment Generation

• Urbanization

• Attract FDI , PPP Initiatives

• Capital Formation

• Rural development

• Entrepreneurship

CORE SECTOR OF INFRASTRUCTURE

•Energy

•Transport

•Communication

•Education

•Health

ROADWAYS

• India has a road network of over 4.86 million km

• Road transport is vital to India's economy. It enables the country's transportation sector to contribute 4.7 percent towards India’s gross domestic product

• More than 60% of freight and 90% of passenger traffic in the countryis handled by road.

DEVELOPMENT AHEAD

•The length of National Highways is expected to grow from 92,850 kms in 2013-14 to 100,000 kms by the end of 2017

•USD 19 Billion infrastructure development between 2012-17

•During 2014-15, around 8,470 kms of National Highways are to be improved

RAILWAYS

• Indian Railways is one of the largest railways under single management

• It is the world’s second largest utility employer with more than 1.36 million employees, empowering the network with smooth and efficient services

• Metro Railways are a new face of Indian Railways linking various nearest cities

• The Indian Railways network spans more than 64,600 kms, making it the world’s third-largest rail network

DEVELOPMENT AHEAD

•USD 1,000 Billion worth of projects

• 100% FDI in the railway infrastructure segment has been allowed recently

• 17 new premium trains

• 8 express trains and 10 passenger trains to be launched

AVIATION

• TheIndian aviation industry is one of the fastest growing aviation industries in the world

• More than 85 international airlines operate in India and 5 Indian carriers connect over 40 countries

• India is the 9th largest aviation market in the world.

• It is predicted that international passengers will grow up to 50 million by 2015

DEVELOPMENT AHEAD

• India is projected to be the 3rd largest aviation market by 2020

• India plans to increase the number of operational airports to 250 by the year 2030

• The Indian aviation sector is likely to see investments totalling USD 12.1 Billion during 2012-17

• USD 9.3 Billion is expected to come from the private sector.

CONSTRUCTION

• India has an estimated urban housing shortage of 18.8 Million dwelling units

• Present levels of urban infrastructure are inadequate to meet the demands of the existing urban population

• 2nd largest employer and contributor to economic activity, after agriculture sector

• The Indian construction industry is valued at over USD 126 Billion

• As per the Indian Census, 2011, the urban population had increased to 377 Million,

DEVELOPMENT AHEAD

• An investment of USD 1,000 Billion has been projected for the infrastructure sector until 2017

• 40% of which is to be funded by the private sector

• An estimated USD 650 Billion will be required for urban infrastructure over the next 20 years

• The Government of India in the Union Budget 2014-15, has announced a project to develop ‘One Hundred Smart Cities’

TELECOMMUNICATION

• India's telecommunication network is the second largest in the world based on the total number of telephone users

• Major sectors of the Indian telecommunication industry are telephony, internet and television broadcast

• Mobile subscriber base-936.12 million.

• Broadband Subscriber 13.42 million

HEALTHCARE

• The healthcare sector in India is expected to grow to usd 250 billion by 2020 from usd 65 billion currently

• India’s cost of production is significantly lower than that of the usa and almost half of that of Europe

• The Indian pharmaceutical market is one of the fastest growing markets in the world

• India is expected to rank amongst the top three pharmaceutical markets in terms of incremental growth by 2020

• Over usd 200 billion is to be spent on medical infrastructure in the next decade

CONCLUSION

• Infrastructure inadequacies in both rural and urban areas are a major factor constraining India's growth.

• India needs a lot more infrastructure to meet its needs.

• The government is focusing on this and has created a set of programs and reforms aimed at addressing this issue.

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