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The Analyst Magazine:
Infrastructure in India : Challenges Ahead
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The strong population growth in India and its booming economy are generating enormous pressures to modernize and expand the country's infrastructure.

 
 
 

Infrastructure services support many aspects of a country's economic and social activities. They are crucial for business development. India has seen years of booming economic growth. However, for years it has underinvested in its infrastructure networks. India's rapid economic development places intense demands on its physical infrastructure. According to official estimates from the Indian Finance Ministry, the country's GDP growth could be 2 percentage points higher but for the shortcomings in infrastructure. This, in turn, puts pressure on national and state authorities' budgets as well as administrative bureaucracies to keep up with fast rising needs.

Infrastructure assets are the physical structures and networks used to provide essential services to a society. These tangible assets, and the businesses set up to manage them, can be viewed as the backbone of an economy. Due to its importance to a country's economic and social development, government institutions historically have provided infrastructure.


In the increased competition of today's global market, a good infrastructure network has become even more vital. Good infrastructure can raise competitiveness through more efficient links, both domestically as well as internationally, and as such it can help to create sustainable economic centers. It is also important to recognize that a reliable social infrastructure such as healthcare and education services are the necessary preconditions for sustained long-term growth.

 
 
 

The Analyst Mgazine, Infrastructure in India, Dr. Norbert Walter, Economist, Deutsche Bank Research, Infrastructure services, Gross domestic products, GDP, Indian economy, India's economic structure, Iindustrial sectors, Public-Private Partnerships, PPPs, International investors, India's urban infrastructure.