There is a huge demand for infrastructure in India. According to one estimate, more than Rupees one lakh crore is required for electricity, roads and railways. Special purpose vehicles can solve the problem to some extent. Banks and financial institutions by investing in SPV created by government can get good return at low risk.

If we look at any of the developed countries like America, England, Australia, France, New Zealand, Japan, Singapore and others, we find that they are essentially good at basic infrastructure. They have done the basic spade work of building good roads, railways, ports, airports, power projects (Thermal Power and Hydro Electric), communication networks (like telephone, telegraph, internet, satellite network etc.) long back. This is the secret behind the advancement of the developed countries. If India wants other nations to regard it as a developed country and not a developing country, it has to concentrate seriously on its infrastructure.

Having recognized the importance of infrastructure for the development of the country, we will see what are the areas in which we are strong and the areas where there is the need for investment in infrastructure and the reasons for failure in improving in some critical areas.

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