Infrastructure Bottlenecks & Economic Development in India

GROUP- 3

MACRO ECONOMICS

Some Components…………….

Infrastructure bottlenecks continue to stifle the economic growth in the India :

India inherited colonial economy at the time of her independence. Infrastructure at this stage was below the level from where effective growth could be carried out.

Thus Infrastructure bottlenecks both social and economic has been the cause of concern for economic development.

To achieve fast growth of economy, various factors are responsible, including Natural and Mineral resources, Capital, skill and technology, Liberal and Cooperative Government Policy and Infrastructure.

Infrastructure bottlenecks affect India’s competitiveness:

Port and road infrastructure bottlenecks coupled with difference in tax structure across states are impacting India’s competitiveness in the global market.

It also affect the sustainability of the competitive market and the capacity of the potential market.

Development in Economy……. In the late 200s, India's growth reached 7.5%, which

will double the average income in a decade. Analystssay that if India pushed more fundamental market reforms, it could sustain the rate and even reach the government's 2011 target of 10%. States have large responsibilities over their economies. The annualised 1999–2008 growth rates for Tamil Nadu (9.9), Gujarat (9.6%), Haryana (9.1%), or Delhi (8.9%) were significantly higher than for Bihar (5.1%), Uttar Pradesh (4.4%), or Madhya Pradesh (6.5%).India is the tenth-largest economy in the world and the third largest by purchasing power parity adjusted exchange rates (PPP). On per capita basis, it ranks 140th in the world or 129th by PPP.

Conclusion Steps for the problem..

New Industrial PolicyAbolition of LicensingFreedom to Import TechnologyContraction of Public SectorFree Entry of Foreign InvestmentMRTP Restrictions RemovedFERA Restrictions Removed Increase in the Importance of

Small IndustriesNew Trade Policy

Cont…..

Reduction in Restrictions of Export-Import:

Reduction in Export-Import Tax:Easy Procedure of Export-

Import:Establishment of Foreign Capital

Market:Full Convertibility on Current

Account:Providing Incentive for Export Fiscal ReformsGross Domestic Product (GDP):Monetary Reforms

Thank You…..Made by :

Sambit Biswal,9439762322