Infrastructure contributes to the economic development of a country. Do you agree? Explain.
Infrastructure contributes to the economic development of a country. Do you agree? Explain.
Infrastructure and economic development go hand-in-hand. Infrastructure contributes to the economic development of a country in the following ways:
(i) Impact on productivity - Infrastructure plays a major role it, the raising productivity of all the three sectors, viz. primary, secondary and the tertiary sector.
(ii) Induces Investment - Infrastructure induces investment. A well developed infrastructure attracts foreign investors which opens new investment avenues and gives birth to profitable ventures.
(iii) Generates linkages in Production - Better means of transport and communication and a robust system of banking and finance generates better inter-industrial linkages. It is a situation when expansion of one industry facilitates the expansion of the other.
(iv) Enhances Size of the Market - Infrastructure enhances the size of the market by providing better transportation and warehousing facilities. These facilities enable large scale production of goods and services winch further help a business to capture more markets.
(v) Enhances Ability to Work - Social infrastructure improves the quality of life of workers. thereby increasing their efficiency. Healthcare centres, educational institutions and other such facilities develop the skills of the workers, which increases their ability and efficiency to work.
(vi) Facilitates Outsourcing - India is emerging to be a global destination for all kinds of outsourcing. For example, call centres, study centres, medical transcription and such other services, owing largely to its sound system of social and economic infrastructure.
Infrastructure and economic development go hand-in-hand. Infrastructure contributes to the economic development of a country in the following ways:
(i) Impact on productivity - Infrastructure plays a major role it, the raising productivity of all the three sectors, viz. primary, secondary and the tertiary sector.
(ii) Induces Investment - Infrastructure induces investment. A well developed infrastructure attracts foreign investors which opens new investment avenues and gives birth to profitable ventures.
(iii) Generates linkages in Production - Better means of transport and communication and a robust system of banking and finance generates better inter-industrial linkages. It is a situation when expansion of one industry facilitates the expansion of the other.
(iv) Enhances Size of the Market - Infrastructure enhances the size of the market by providing better transportation and warehousing facilities. These facilities enable large scale production of goods and services winch further help a business to capture more markets.
(v) Enhances Ability to Work - Social infrastructure improves the quality of life of workers. thereby increasing their efficiency. Healthcare centres, educational institutions and other such facilities develop the skills of the workers, which increases their ability and efficiency to work.
(vi) Facilitates Outsourcing - India is emerging to be a global destination for all kinds of outsourcing. For example, call centres, study centres, medical transcription and such other services, owing largely to its sound system of social and economic infrastructure.
