Investment in Infrastructure for Inclusive Economic Growth

Investment in Infrastructure for Inclusive Economic Growth

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Infrastructural development is one of the core sectors of development on which most of the nations are focusing on. Development does not mean that only a section of the society gets benefited, but in the true sense, the development of a nation reflects an increase of income of both rich and poor at the same rate. Many nations are investing huge sums of money in various sectors to strengthen their economy and benefit their citizens. But just like every finger is not the same, each sector can’t provide an outstanding profit to a nation.

Now it becomes quite important to understand why every nation is running behind the infrastructural development. Well, one of the main reasons behind it is that a nation with excellent infrastructural facilities is more likely to attract higher foreign investment than any other country. Also, infrastructural development not only strengthens the economy but also uplifts the economically weaker section of the society and provides them with better living space. If we talk about India, theinfrastructural development in the country accounts for a significant ratio in the GDP growth every year. Almost all the major sectors like power generation, construction, road and railways, building townships, oil, and gas come under infrastructure. The infrastructure sector is one of the key sectors playing a major role in the growth and development of India.

• It’s important to understand that investing in infrastructure is not beneficial but also it is essential for the inclusive economic growth of the nation. Inclusive growth is more important as each citizen of the country should get benefited from the ongoing development.

• Investment in infrastructure opens new doors for transportation between the countries like building seaports, airports, etc. so that goods and services can be easily exchanged between the counties. The best example is the Mundra port of Gujarat, one of the busiest seaports of India. Mundra port alone generated a revenue of more than INR 3339 crores in 2021.

• Infrastructural development not only stabilizes the economy of a nation but also helps it grow at a rapid pace. Investing in infrastructure helps a nation in making inclusive growth thus reflecting in reduced poverty.

• It is often seen that Large scale industries exhibit a good infrastructural facility and thus many nations including the Indian Government are focusing on better infrastructural development for the MSMEs (Micro, small, and medium-sized enterprises). These MSMEs provide jobs to millions of people in India and also significantly contribute to the economic growth of India.

• Many people think that the agricultural sector is not included in infrastructural development but it’s a myth. Infrastructural developments develop technology that benefits a lot in the agricultural sector. Also, the main aim of infrastructural development is not to develop more industries but it focuses on inclusive growth which includes rural infrastructural development, providing safe drinking water, proper hygiene, sanitation facility, etc.