Infrastructure

Infrastructure is the support system of Industrial and agricultural production, foreign and domestic businesses. It is the basic organizational and physical structure that is required to run a business smoothly. In an organization or for a country a basic infrastructure includes communication & transportation, sewage, water, education system, health system, clean drinking water, and monetary system, etc.

A country’s economic and social development is directly dependent on a country’s Infrastructure and is the basic requirement. Many of the developed countries make a lot of progress because of the enormous growth of economic and social infrastructure. Good infrastructure makes the work process easy, resulting in positive and maximum productivity.

Types of Infrastructure

  • Economic Infrastructure: This infrastructure is directly linked with the economic development of a country or an organization. This includes the basic amenities and services that directly influence and benefits the production process economy distribution. Few examples of economic infrastructure are power, transportation, irrigation, communication, etc.
  • Social Infrastructure: This infrastructure is the basic services that improve individual productivity and achieve social objectives. Social Infrastructure contributes indirectly to the country’s economic development. For instance, the education sector doesn’t contribute directly to the economic development of a country. However, it helps indirectly by high-quality education to the students and therefore producing doctors, scientists, engineers, and technologist. Few examples of social infrastructure are water supply, sanitation, health, housing, etc

Contribution of Infrastructure

State of Rural Infrastructure in India

(A) MEANING

  • Infrastructure refers to such core elements of economic and social change which serve as a support system to production activity in the economy.
  • These elements include,

    1. Roads,

    2. Railways,

    3. Telecommunication facilities,

    4. The country’s educational system including schools and colleges,

    5. Health system including hospitals,

    6. Sanitary system including clean drinking water facilities and

    7. The monetary system including banks, insurance, and other financial institutions.

(B) FOLLOWING ARE THE TWO CATEGORIES OF INFRASTRUCTURE:

(1) ECONOMIC INFRASTRUCTURE

  • Economic Infrastructure directly supports economic growth.
  • It provides product support services such as energy, transport, communication, etc.
  • It improves productivity levels in productive sectors like agriculture and industry.

(2) SOCIAL INFRASTRUCTURE

  • Social infrastructure improves human productivity and efficiency through facilities of education, health, housing, etc.
  • It directly supports social growth in the economy.

Short Questions:

Q1) WHY IS SOCIAL INFRASTRUCTURE IMPORTANT FOR THE ECONOMY?

ANS: It is important for the economy because it improves human productivity and efficiency by providing facilities for education, health, housing, etc.

Q2) WHAT IS THE IMPORTANCE OF ECONOMIC INFRASTRUCTURE?

ANS: Economic infrastructure is important as it improves productivity levels in productive sectors such as agriculture and industry, by providing support services such as energy, transport, communication, etc.

MULTIPLE CHOICE QUESTION :

Q.1 What are the categories of infrastructure?

a. Social Infrastructure

b. Economic Infrastructure

c. Both (a) and (b)

d. None of the above

ANSWER KEY

1-c

Q.NO

FILL IN THE BLANKS

1

_____________refers to such core elements of economic and social change which serve as a support system to production activity in the economy.

2

Infrastructure enhances the size of the market with good means of __________

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