Infrastructure is the lifeline of the economy. Infrastructure contributes to the economic development of a country by improving the quality of life and by increasing the productivity of the factors of production. Every kind of sector, be it agriculture, industry, or service, requires good infrastructure. Agriculture depends considerably on the adequate expansion of irrigation facilities. Industrial and service sector progress depends on the development of power and electricity generation, transport, and communications. The country’s educational system, health system, sanitary system, and monetary system are also covered under the umbrella of term infrastructure. Traditionally, the role of the development of infrastructure was played by the government of the country. This is because infrastructure development requires a large number of funds and the private sector can’t afford it. Also, the time period lagging between investment and returns is very long. But in modern times, the private sector has also taken up the role of infrastructure development, either on its own or in partnership with the public sector. Compared to the developed nations like Japan and US, India’s infrastructure development is not impressive. It is widely understood that infrastructure is the foundation of development. India still has a long way to go.

What is/are the reason/reasons for the construction of infrastructure mainly by the government?

Both of the above

Infrastructure development requires large amount of funds (huge investment) and private sector can’t afford it. Also, the time period lagging between investment and returns (gestation period) is very long.