AN OVER VIEW OF INFRASTRUCTURE CONTRIBUTION TO THE G.D.P. GROWTH

1. INDIAN ECONOMY
SEMINAR
WELCOME TO ALL
SHANSON SHAJI
15-PEC-25

2. IN INDIA’S ECONOMIC
DEVELOPEMENT
IMPORTANCEOF…….

3. INTRODUCTION
• Infrastructure, in general, defines as a set of facilities through which goods and services are provided
to the public. Infrastructure is the stock of basic facilities and capital equipment needed for the
functioning of a country or area; the term to refer collectively to the roads, bridges, rail lines, and
similar public works that are required for an industrial economy, or a portion of it, to function.
• The total investment in infrastructure in 2016–17 was estimated to be around 6-9% of GDP.
• According to BUDGET Plan, the total investment in infrastructure required is 9% and 11% in the
ending years.
• According to the budgeted plan, the total investment in infrastructure required is 7.5%
• GDP growth averaging 9% per year can be achieved only by
• overcoming infrastructure deficit.
• adequate investment takes.
• Achieved through a combination of public investment, public-private-partnerships (PPPs) and
exclusive private investments
[Source: www.planningcommission.nic.in]

4. OBJECTIVES OF THE STUDY
o To examine the
theoretical framework of
infrastructure.
o To analyse the socio
economic relationship
between
infrastructure

5. NEED OF THE STUDY
• Every economy either developing or developed counrty has two
kinds of main basic objectives:-
• Providing basic needs and facilities to their population
• Achieving higher growth rates.
The need for studying importance of infrastructure growth and development. How
infrastructure plays a dynamic role to fulfil their growth targets as well as achieving
higherlivingstandards of theirmass population.

6. IMPORTANCE OF
INFRASTRUCTURE

7. INVESTMENT PLAN
X Plan XI Plan
Sectors US $ billion Share (%) US $ billion Share (%)
Electricity (incl. NCE) 72.96 33.49 166.63 32.35
Roads and Bridges 36.22 16.63 78.54 15.25
Telecommunication 25.84 11.86 64.61 12.54
Railways (incl. MRTS) 29.91 13.73 65.45 12.71
Irrigation (incl. Watershed) 27.88 12.80 64.34 12.49
Water Supply and Sanitation 16.20 7.44 35.93 6.98
Ports 3.52 1.61 22.00 4.27
Airports 1.69 0.78 7.74 1.50
Storage 1.20 0.55 5.59 1.09
Gas 2.43 1.11 4.21 0.82
Total US $ billion 217.86
100
515.05
100
Rs. crore 871,445 2,060,193
[Source: www.planningcommission.nic.in]

8. Electricity
32%
Roads
15%Telecom
13%
Railways
13%
Irrigation
12%
Water Supply and
Sanitation
7%
Ports
4%
Airports
2%
Gas
1%
Storage
1%
XI PLAN INVESTMENT
[Data Source: www.planningcommission.nic.in]

9. PROJECTED INVESTMENT IN
INFRASTRUCTURE IN THE ELEVENTH
PLAN
270,724
322,390
390,957
482,455
593,666
0
100000
200000
300000
400000
500000
600000
700000
2007-08 2008-09 2009-10 2010-11 2011-12
(Rs.crore)
Projected Investment in Infrastructure in the Elevent Plan (Rs. 20,60,193 crore)
[Data Source: www.planningcommission.nic.in]

10. • Rs. 27,000 crore to be spent on roadways.
• 65 eligible habitats to be connected via 2.23 lakh kms of road. Current
construction pace is 100 kms/day.
• Shops to be given option to remain open all seven days in a week across
markets.
• Rs. 55,000 crore for roads and highways. Total allocation for road
construction, including PMGSY, - Rs 97,000 crore.
• India's highest-ever production of motor vehicles was recorded in 2015.
• Total outlay for infrastructure in Budget 2016 now stands at Rs. 2,21,246
crore.
UNION BUDGET 2016-17
HIGH LIGHTS ON
INFRASTRUCTURE

11. • New greenfield ports to be developed on east and west coasts.
• Revival of underserved airports. Centre to Partner with States to revive small
airports for regional connectivity.
• 100 % FDI in marketing of food products produced and marketed in India.
• Dept. of Disinvestment to be renamed as Dept. of Investment and Public
Asset Management.
• Govt will amend Motor Vehicle Act in passenger vehicle segment to allow
innovation.
• MAT will be applicable for start ups that qualify for 100 % tax exemption.
• Direct tax proposals result in revenue loss of Rs.1060 crore, indirect tax
proposals result in gain of Rs.20,670 crore.
UNION BUDGET 2016-17
HIGH LIGHTS ON
INFRASTRUCTURE

12. • Focuson making India a manufacturing hubto ensure employment toouryouth. Make In India to promote
entrepreneurship by making ouryouth job creators than being job seekers.
• National Investment & Infrastructure Fundannounced.
• Through PPP (Public private partnership)model. Public investment to bestepped upto catalyze private investments.
• Increased Budgetary allocation to Roads & Railways; Tax-free infra bonds for Rail, Roads transport projects.
• 5 Ultra Mega power projects, of 4000 MW announced.
• Ports in public sector will beencouragedto corporatize & become companies under companies act

13. PEOPLE LIVING STANDARDS
IMPROVES
B
E
F
O
R
E
A
F
T
E
R
ADVANTAGES OF PROMOTING INFRASTRUCTUR

14. GDP INCREASES

15. • Country economic growth improves
• Improves Job Opportunities
• Improves Sector development
ADVANTAGES OF PROMOTING INFRASTRUCTURE

16. DIFFICULTIES IN PROMOTING
INFRASTRUCTUREThe Urban infrastructure
problems in India are:
• Urban residence
• Business premises
• Power
• Urban transport
• Water
• Airports
• Railways
• Seaports
• Roads
• Bridges
• Solid waste management
• Health care
• Entertainment
• Communications
The Rural infrastructure problems in
India are:
Power
Irrigation
Drinking Water
Rural housing
Roads
Health care
Education
Telecommunication

17. CONCLUSION
• Increase Private participation to fund the deficit in investment to attain GDP growth rate
of 6-9%
• Development of the infrastructure sector is crucial to the growth of the Indian economy.
Sustainable development can only be attained through a careful analysis of the factors
that have mitigated growth in the past, and thereafter, taking the appropriate corrective
measures.
• Over the last decade, the Indian government has made significant efforts to eliminate
bottlenecks in these areas. It has initiated policies and schemes such as ECs/EIs and
Model Concession Agreements to increase the inflow of private sector investments and
make thebidding process for projects more transparent.

18. By SHANSON SHAJI