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Question

Explain the two categories into which infrastructure is divided. How are both interdependent?

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Solution

Infrastructure is broadly categorised into

(i) Social Infrastructure - It refers to the core elements of society which serve as a foundation for the process of social development of a country. It contributes to economic processes indirectly and from outside the system of production and distribution. e.g.. educational institutions, hospitals, sanitary conditions, housing facilities, etc. Social infrastructure promotes social well-being.

(ii) Economic Infrastructure - It refers to all such elements of economic change which serve as a foundation for the process of economic growth. They help in the process of production directly. e.g.. transportation, communication, energy/power, etc. Quality of economic infrastructure can be improved by improving social infrastructure. Thus, these infrastructures support each other. Hence, they both are interdependent.


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