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Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Infrastructure

Question:
The Indian economy's main driver is the infrastructure industry. The government places a strong emphasis on this sector because it is crucial for India's overall growth. Power, bridges, dams, highways, and urban infrastructure development are all included in the infrastructure industry. In other words, the infrastructure sector propels the development of related industries including townships, housing, built-up infrastructure, and construction development projects, acting as a catalyst for India's economic growth.
 
Infrastructure development is essential if India is to achieve its goal of having a $5 trillion economy by 2025. In order to boost the growth of the infrastructure industry, the government has introduced the National Infrastructure Pipeline (NIP), along with other programs like "Made in India" and the production-linked incentives (PLI) program. Historically, funding for transportation, energy, water, and irrigation has accounted for more than 80% of the nation's infrastructure spending.
 
Some of the recent government initiatives and investments in the Infrastructure sector are as follows:
 
  • In FY23 (until September 2022), the combined index of 8 crore countries stood at 142.8 majorly driven by the production of coal, refinery products, fertilizers, steel, electricity, and cement industries.
  • To encourage rooftop solar (RTS) throughout the country, notably in rural regions, the Ministry of New and Renewable Energy is undertaking Rooftop Solar Programme Phase II, which aims to install an RTS capacity of 4,000 MW in the residential sector by 2022 with a provision of subsidy.
  • In March 2022, Mr. Nitin Gadkari, Minister of Road Transport and Highway inaugurated 19 National Highway projects in Haryana and Rajasthan totaling Rs. 1,407 crores (US$ 183.9 million).
  • For a redesigned, reform-based, and result-linked new electricity distribution sector strategy for the next five years, the government announced Rs. 305,984 crores (US$ 42 billion).

Which of the following statement(s) explains the relevance of infrastructure?

Options:

It improves the quality of life of people 

Infrastructure helps in boosting the productivity of factors of production

Infrastructure facilities are highly crucial to modern agriculture

All of the above

Correct Answer:

All of the above

Explanation:

Infrastructure is the support system on which depends the efficient working of a modern industrial economy. Modern agriculture also largely depends on it for speedy and large-scale transport of seeds, pesticides, fertilizers and the produce using modern-roadways, railways and shipping facilities. In recent times, agriculture also depends on insurance and banking facilities because of its need to operate on a very large scale. Infrastructure contributes to the economic development of a country both by increasing the productivity of the factors of production and improving the quality of life of its people.

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