A common refrain today: Infrastructure is the backbone of our Economic growth. The country's growth in the future will depend on the infrastructure it provides. Why do we need a superior Infrastructure? Why is our Economy so dependent on it?
Infrastructure capital is the asset of a nation, a value added to its existing natural resources. The last decade has seen Indian economy growing at an average rate of above 6% next only to China, Singapore and S.Korea. A growth rate of over 8% is being targeted for the next decade. This rapid growth has been fueled by the performance of both the services and the manufacturing sectors. The country now witnesses an increase in manufacturing and exports and imports(trade) while the bull run of the services sector continues unabated.
Demand and public consumption have grown up manifolds due to both higher earnings and a numerical increase in the workforce which has lead to the factories targetting higher production. Also with the liberalization of fiscal and trade policies, our economy has been opened to the world economy and the Indian Industries now compete directly in the global markets or against the global players within the Indian markets. To remain competitive, they need strong global linkages and their products need to be competitively priced. This in effect boiles down to our enterprises requiring quick and easy access to raw materials at lower trasportation costs to reduce their input costs. Also, they need to make sure that their produce reaches the market at the earliest so as to reduce the handling and inventory costs and also to reduce the risk of obsoleteness in this highly dynamic business environment. How can we ensure that the growth and deveopment of our Industries are not hampered by the supply bottlenecks of critical services like power, transportation, availability of key raw material resources such as iron,cement etc and telecommunication. Yes, by upgrading the infrastructure which in essence refers to the critical services such as power, transport, energy, raw materials availability and communication which lend critical support to the daily operations of our industries and enterprises.
I think this gives a fair idea on why Infrastructure sector has shot into prominence in the last decade and on why our Government is commited to bring investements to the tune of 350 billion dollars into this sector in the next decade.
Infrastructure capital is the asset of a nation, a value added to its existing natural resources. The last decade has seen Indian economy growing at an average rate of above 6% next only to China, Singapore and S.Korea. A growth rate of over 8% is being targeted for the next decade. This rapid growth has been fueled by the performance of both the services and the manufacturing sectors. The country now witnesses an increase in manufacturing and exports and imports(trade) while the bull run of the services sector continues unabated.
Demand and public consumption have grown up manifolds due to both higher earnings and a numerical increase in the workforce which has lead to the factories targetting higher production. Also with the liberalization of fiscal and trade policies, our economy has been opened to the world economy and the Indian Industries now compete directly in the global markets or against the global players within the Indian markets. To remain competitive, they need strong global linkages and their products need to be competitively priced. This in effect boiles down to our enterprises requiring quick and easy access to raw materials at lower trasportation costs to reduce their input costs. Also, they need to make sure that their produce reaches the market at the earliest so as to reduce the handling and inventory costs and also to reduce the risk of obsoleteness in this highly dynamic business environment. How can we ensure that the growth and deveopment of our Industries are not hampered by the supply bottlenecks of critical services like power, transportation, availability of key raw material resources such as iron,cement etc and telecommunication. Yes, by upgrading the infrastructure which in essence refers to the critical services such as power, transport, energy, raw materials availability and communication which lend critical support to the daily operations of our industries and enterprises.
I think this gives a fair idea on why Infrastructure sector has shot into prominence in the last decade and on why our Government is commited to bring investements to the tune of 350 billion dollars into this sector in the next decade.
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