- 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 is true when we study GDP and infrastructure altogether?
Answer & explanation
Correct answer: option 2
The correct answer is option 2: GDP and infrastructure are directly proportionate to one another
In any country, as income rises, the composition of infrastructure requirements changes significantly. For low-income countries, basic infrastructure services, like irrigation, transport, and power, are more important. As economies mature and most of their basic consumption demands are met, the share of agriculture in the economy shrinks and more service-related infrastructure is required. This is why the share of power and telecommunication infrastructure is greater in high-income countries. Thus, the development of infrastructure and economic development go hand in hand or we can say they are directly proportionate to one another.