Infrastructure in Indian Economy - dcomm.org

Infrastructure in Indian Economy

One of the major requirements for sustainable and inclusive

economic growth is an extensive and efficient infrastructure network.

It is critical for the effective functioning of the economy and industry.

The key to global competitiveness of the Indian economy lies in

building a high class infrastructure. To accelerate the pace of

infrastructure development and reduce the infrastructure deficit, the

Government has initiated a host of projects and schemes to upgrade

physical infrastructure in all crucial sectors.

Despite several challenges, the positive results of the

Government’s initiatives are showing in some sectors. However,

required capacity addition in a time-bound manner needs focused

attention in other sectors.

Prof.B.T. Chavan & A.S. Bhanji

Infrastructure and economic development

• Infrastructure refers to the fundamental facilities and systems

serving a country, city, or area, including the services and facilities

necessary for its economy to function.

• It is typically characterizes technical structures such as roads,

bridges, tunnels, water supply, sewers, electrical grids,

telecommunications, and so forth, and can be defined as;

"the physical components of interrelated systems providing

commodities and services essential to enable, sustain, or enhance

societal living conditions.“

• Infrastructural facilities are referred as economic and social

overheads.


https://en.wikipedia.org/wiki/Economy

https://en.wikipedia.org/wiki/Road






https://en.wikipedia.org/wiki/Water_supply



https://en.wikipedia.org/wiki/Sewage

https://en.wikipedia.org/wiki/Electrical_grid



https://en.wikipedia.org/wiki/Telecommunication

https://en.wikipedia.org/wiki/Commodities

https://en.wikipedia.org/wiki/Quality_of_life



Infrastructure and economic development

• Primary Industry requires: Irrigation, Power supply, Strong

credit system and Transportation etc.

• Secondary Industry requires: Power supply, strong credit

system, Transportation, Communication, Water, Insurance,

Equipments, man power etc.

• Tertiary Industry requires: Power supply, Strong credit

system, Communication, Insurance, supply chain etc.


Why Strong Infrastructural Facilities?

• Infrastructure increases agricultural production and productivity

• It accelerates industrial growth

• It increases the flow of foreign capital

• It generates employment opportunities

• It contributes to tourism development

• It contributes domestic market development

• Contributes to development of backward regions

• It is a instrument of social change

• For rapid industrialization & urbanization

• Easy movement of people and bringing them in contact with each other


Sources of Energy

I) Conventional (Non-Renewable)

A) Commercial

1) Coal

2) Petroleum (Oil & Gas)

3) Electric Power

i) Hydro Power

ii) Nuclear Energy

iii) Thermal Power

A) Non-Commercial

1) Fire wood

2) Agricultural & vegetable wastage

II) Non-Conventional

(Renewable)

1) Wind Energy

2) Solar Energy

3) Tidal Energy


Plan wise and Sector wise Expenditure on

Infrastructure


GDP Growth and Growth in Infrastructure

Spending


Power & Energy Infrastructure

• Power and Energy plays an important role in the economic

development of each and every country.

• It includes; Coal, Petro-chemical, Gas, Electricity, Solar, Wind energy

etc.

• 6% increase in GDP would contribute to 9% increase in energy demand

• Energy intensity is energy consumption per unit of GDP

• India’s energy intensity is 3.7 times of Japan, 1.55 times of USA, 1.47 times of Asia and 1.5 times the world average


Thermal, Nuclear and Hydro

• Installed capacity of power plants in India till 31st March, 2011 was around 173 GW of which

• Thermal contribution is about 65%

• Nuclear provides 2.8% of electricity generated

• Hydro contribution is about 21.6%

(Exploitable potential 60% at 84000 MW)

• Renewables –10.6%


ALL INDIA INSTALLED GENERATION

CAPACITY Central

Sector:

54412 MW

State Sector: 82452 MW

Private

Sector:

36761 MW

All India:

173625 MW

As on 31st

March,2011


TOTAL INSTALLED CAPACITY – 173,624 MW

(as on 31.03.2011)


Growth of India’s Power Sector

serious growth after the 60s


Industry wise consumption of Energy

Sr. No. Area 1950-51 1970-71 2008-09

1) Industry 63 68 37

2) Agriculture 4 10 20

3) Commercial 13 10 15

4) Domestic 13 9 25

5) Railway 7 3 3

Economic Survey - 2010

0

10

20

30

40

50

60

70

Industry Agriculture Commercial Domestic Railway

63

4

13 13

7

68

10 10 9

3

37

20 15

25

3

1950-51 1970-71 2008-09


Per Capita Energy Consumption

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

US

A

Chin

a

Russia

n F

edera

tion

Japan

India

Germ

any

Canada

Fra

nce

United K

ingdom

South

Kore

a

World A

vera

ge

Low per capita energy consumption


Energy Crisis & Measures

Crisis

• Excess Demand for the consumption

• Oil prices and inflationary pressures

• Growing oil imports

• Transmission and distribution losses (23% Theft & Transmission loss)

• Operational inefficiency

• Inadequate electrification (19% Villages are not electrified)

• Problem in electricity generation (Funds & Social Problems)

Measures

• Setting up of oil production (in Country and offshore)

• Control over the consumption of petrol

• Improvement in the generation of power

• Encouragement for the use of non-conventional & Renewable energy sources

• Encouragement to private sector

• Control on transmission and distribution losses

• Ultra mega power plants

• Conservation of energy


Transport System In India

• Transportation is the movement of people, animals and goods from one

location to another. Transport is important because it enables trade between

persons, which is essential for the development of civilizations.

• Transportation creates place utility and helps in disbursement of all

resources

• Annual growth is projected at over 12% for passenger traffic and over 15%

for cargo traffic.

Sources of Transportation

Road Transport

Rail Transport

Air Transport

Water Transport


https://en.wikipedia.org/wiki/Cargo

http://en.wikipedia.org/wiki/File:BusesDelhiDTC.jpg

Traditional Means of

Transportation


http://en.wikipedia.org/wiki/File:Planquin_benaras.jpg

http://en.wikipedia.org/wiki/File:Sugar_cane_bullock_cart2.jpg

http://en.wikipedia.org/wiki/File:Cycle-Rickshaw.jpg

http://en.wikipedia.org/wiki/File:Kolkata_Tram.jpg

Modern Means of

Transportation


Railways

Indian Railways is one of the largest railways

under single management.

It carries some 18 million passengers and 2

million tons of freight a day and is one of the

world’s largest employer.

The railways play a leading role in carrying

passengers and cargo across India's vast

territory. Prof.B.T. Chavan & A.S. Bhanji

The trains were introduced by the British in

1853.

The Indian railways improved a lot from then

on to become the one of the longest railway

networks in the world.

There are 16 railway zones in India.

There are almost 8000 railway stations in the

country.


The total route length of the railway network is

64,061 km (39,806 mi).

About 46% of the railway route is electrified.

The Indian railways uses 4 gauges: broad

gauge, standard gauge, meter gauge, narrow

gauge.



http://en.wikipedia.org/wiki/File:India_Train.jpg

http://en.wikipedia.org/wiki/File:Indian_Diesel_Loco.JPG

http://en.wikipedia.org/wiki/File:Narmada_at_Indore2.jpg

http://en.wikipedia.org/wiki/File:Salem-Chennai_Egmore_express.jpg

Road transport…

Roads are the dominant mode of transportation in India

today.

They carry almost 90 percent of the country’s passenger traffic and 65 percent of its freight.

National Highways Development Authority of India was

constituted in 1988

It is responsible for the development , maintenance and

management of National Highways

It is currently undertaking developmental activities under

(National Highways Development Project)


Type of Road Length

Expressways 200 km (120 mi)

National Highways 66,590 km (41,380 mi)

State Highways 131,899 km (81,958 mi)

Major District Roads 467,763 km (290,654 mi)

Rural and Other Roads 2,650,000 km (1,650,000 mi)

Total Length 3,300,000 km (2,050,000 mi)

(Approx)

Statistics….


Mumbai Pune Expressway


http://en.wikipedia.org/wiki/File:Mumbai_Pune_ExpresswayDec2007.jpg

A view of Delhi- Gurgaon stretch of National Highway - 8 (NH-8).

The 8-lane expressway connects Delhi to Gurgaon and IGIA


http://en.wikipedia.org/wiki/IGIA

AGRA -MATHURA

Air transportation…

Air transport in India started between Allahabad & Naini (township in

Allahabad) in 1911

Airport authority of India was established on April 1, 1995

The Air India, has become the 16th largest airline in Asia, presently

operates a fleet of 159 aircraft serves 50 domestic & 39 international

routes

The other airlines such as Kingfisher Airlines, Air India and Jet Airways

are the most popular brands in domestic air travel in order of their market

share.



Airport Authority Of India


Cargo airlines :Blue Dart Aviation ltd is

Operating scheduled cargo services in

the country Prof.B.T. Chavan & A.S. Bhanji

PAWAN HANS


Advantages

It is the fastest mode of transport.

It is very useful in transporting goods and passengers to the

area, which are not accessible by any other means.

It is the most convenient mode of transport during natural

calamities.

It provides vital support to the national security and defence


• Disadvantages:

• It is relatively more expensive mode of transport.

• It is not suitable for transporting heavy and bulky goods.

• It is affected by adverse weather conditions.

• It is not suitable for short distance travel.

• In case of accidents, it results in heavy losses of goods,

property and life.


Water transport…


Types of water transport….

Inland water transport: include rivers, canals , backwaters & creek (a small stream · Creek (tidal), an inlet of the sea) that allows ships & boats to navigate

India has

Navigable waterways :around 14,500 km

Navigable by mechanized flat bottom vessels

….rivers ….canals


IWAI

Inland waterways authority of India is the

authority in charge of the inland waterways

• Cargo transportation is organized

GOA

KERALA

WEST BENGAL

ASSAM Prof.B.T. Chavan & A.S. Bhanji

http://en.wikipedia.org/wiki/File:Jawaharlal_Nehru_Trust_Port.jpg


Disadvantages(Constraints….)


Composition of Indian transportation with GDP

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05

3,8 3,9 3,9

4,1

4,3

4,5

1,1 1,1 1,1 1,1 1,1 1,1

0,2 0,2 0,2 0,2 0,2 0,2 0,2 0,2 0,2 0,2 0,2 0,2

Road Rail Water Air


Average Annual Growth (%) in Transport Sector GDP

(2004-05 / 2000-01)

Rail 15%

Road 24%

Water 18%

Air 20%

Other 23%


Problems of transport Development in India

• Transport Bottlenecks (Constraints)

• Poor Planning

• Financial Problem

• Technological Upgradation

• Rail and Road Co-ordination

• Operational Constraints

• Inadequacy


Communication in Indian Economic Growth

and Development

• Communication is an important part of economic development. It

facilitates exchange of commercial activities and integrates the

nation economically and socially.

• Communication means transmission of information for the

development of industry, trade, commerce in the country.

• Communication system comprises

Post and Telegraph services

Telecommunication system

Broadcasting

Television and Information services

E-communication Prof.B.T. Chavan & A.S. Bhanji

Postal and Telegraph

services • It is the largest network in the world

• Its main task is to deliver letter and money order

• Since from 1837 the Indian postal service system is working.

• Today we have 1.55 lakhs post offices, out of that 1.4 lakhs are in the rural area.

• The postal services have also introduced speed post service, E-mail and E-money

and E-bill

• Other services like saving bank certificates, postal life and non-life insurance and

mutual fund has been started.

• The no. of telegraph offices have been increased from 8200 to over 30000 since

1951

• The services provided by Telegraph are Phonogram service, Telex Service and

Direct trunk Dialing etc. Prof.B.T. Chavan & A.S. Bhanji

Telecommunication

• At the time of independence, India had total of only 321 telephone

exchange with about 8200 working connections.

• By March 2011 India had more than 826 million connection.

• 5.6 lakhs villages are connected by using Village Public Telephone. Hence

90% villages have been connected with this method.

• There has been growth in the telecommunication sector after 1995. With the

establishment of BSNL and MTNL it is one of the largest communication

network in India with a capacity of 50 million working connections.

• There has been shift in the importance of communication with the

introduction of private sector and wireless telephony.


Broad Band

• The internet connections have been increased from 0.01 million in 1995 to around

100 million in 2010.

• Broad Band subscriber have increased from 0.49 lakhs in Dec. 2004 to more than

10.7 million in Nov. 2010.

• Regulatory framework and functions are carried out by Telecomm Regulatory

Authority of India.

• New development in the field of telecommunication are 3G & 4G connections, Mobile

No. portability, etc

• FDI ceiling has been raised to 74% (EARLIER IT WAS 49%)

• E-marketing is possible due to internet only

• Amazon.com, Flipcart.com, Snapdeal.com are the examples of E-marketing which

have taken a momentum in the Indian market. Prof.B.T. Chavan & A.S. Bhanji

Television and Broadcasting

• Television in India is a huge industry which has thousands of programmes

in many languages.

• More than half of all Indian households own a television.

• As of 2012, the country has a collection of free and subscription services

over a variety of distribution media, like the CHERIAN channel, through

which there are over 823 channels of which 184 are pay channels.

• The regular daily transmission started in 1965 as a part of All India Radio.

• Television services were separated from radio in 1976.

• National telecasts were introduced in 1982. In the same year, colour TV

was introduced in the Indian market.

• This is the most important media for the advertisement in India or for that

matter in the world.


https://en.wikipedia.org/wiki/Pay_television

https://en.wikipedia.org/wiki/All_India_Radio

Urban Infrastructure

• Urban Infrastructure plays very important role in the case of

healthy and well being of human development.

• Rapid organization and industrialization causes for growing

demand for utilities like electricity, transportation,

communication, water supply, sanitation and residential

facility, drainage etc.

• It is the prime responsibility of the local self government in co-

ordination with the state government to provide all the above

facilities.

• Government is providing drinking water to the 100%

population residing in the urban area and sanitation facility to

the 75% population.


• Mostly financing is done by the state and central government and

remaining amount is collected from the urban people in the form of

different taxes. Still government needs support from the following

agencies.

• Life Insurance Corporation, The housing and Development

Corporation of India and The Infrastructure leasing and Financial

Services Ltd. Etc.

• Now many states in India inviting private sector participation in the

provision of infrastructure service on a more cost effective basis.

• e.g. contracting outwork, construction and maintenance of toilet,

water supply system, garbage collection and disposal, BOT etc.

Urban Infrastructure


• The science and technology represents accumulations of knowledge

and refinement in tools over a last 200 years.

• Science and technology has helped to improve the quality of human

life in the economic and social progress.

• India’s First Prime Minister Mr. Javaharlal Neharu believed in the spread of scientific temper. As a result of his vision National

laboratories were established for basic and applied research.

• Indian Space Research Organization (ISRO)

• Council of Scientific and Industrial Research (CSIR)

• Department of Atomic Energy (DAE)

• Indian Council of Agriculture (ICA)

• Department of Electronics

• Department of Space Technology (DST)

Science and Technology


• In 1958 the science policy resolution was adopted to provide

positive incentives for the development of utilization of science and

technology in nation building activities.

– The major aims of this policy are;

To foster, promote and sustain science and scientific aspects

To ensure an adequate supply of research scientists of higher quality

To encourage and initiate with all possible speed, programmes for the training of

scientific and technical personnel

To provide benefits of acquisition and application of scientific knowledge to the

people of the country

Science and Technology


Present Status of science and Technology In India

• The Indian government has established large network of laboratories and

universities.

• Public and private sector organizations have established research and development

laboratories to meet their internal technological requirement.

• The rapid growth of engineering consultancy organizations to provide design and

consultancy services.

• India’s stock of technical manpower has been growing at the rate of about 9% per year for the last 20 years, and it is estimated about 2.5 million.

• After USA, India ranks second in the world as regard to qualified science and

technology manpower. But as compare to the population it is not satisfactory.

• The number of scientists and engineers per 10000 population in India is hardly 22

and 8, where as it is 83 and 43 in USA and 311 and 456 in Russia

• 6% manpower is engaged in research and experimental work in India, where as it is

14% in Russia and 32% in USA. Prof.B.T. Chavan & A.S. Bhanji

• Non utilization of available scientific and technical talent

(Unemployment among Scientific and technical manpower)

• Inadequate laboratory facilities

• Deficiency of science and technology infrastructure

Weaknesses about Science and Technology


• Since independence, the government of India took serious efforts for the planned

development of infrastructure facility.

• The widening gap between demand and supply of infrastructure is the serious problem for

the economic growth of the country.

• Since 1991, Government of India adopted the strategy towards providing facilities as well

as creating environment for private sector participation in infrastructural development.

• The government has set up Infrastructure Development Finance Company in January

1997.

• The government has announced to a tax holder companies for developing, maintaining and

operating infrastructural facilities.

• The government has also permitted income tax exemption on dividend, interest and long

term capital gain earned by the companies and individuals for such development facilities.

• The government has enhanced tax rebate limits for investment in shares and debentures

in infrastructural development.

Private Investment in Infrastructure – Outlook & Prospects


Wish you a Happy Diwali

Best wishes for Exam Prof.B.T. Chavan & A.S. Bhanji

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Infrastructure in Indian Economy - dcomm.org