Model Answer:
Infrastructure development has been a cornerstone of India's economic policy since independence. This relationship has been particularly pronounced, with infrastructure investments playing a crucial role in driving the country's economic transformation over the past few decades.
India's experience demonstrates the positive impact of infrastructure investment on economic growth and inclusivity:
Economic Growth: According to the Economic Survey 2022-23, India's infrastructure investment increased from 5.3% of GDP in 2014-15 to 7.5% in 2021-22. This rise correlates with India's GDP growth, which averaged 6.7% per annum from 2014 to 2020, up from 6.1% in the previous decade.
The National Infrastructure Pipeline (NIP) launched in 2019 aims to invest ₹111 lakh crore in infrastructure from 2020 to 2025. The government expects this to boost GDP growth by 2-3 percentage points annually.
Job Creation and Inclusivity: Infrastructure projects are labor-intensive, creating both skilled and unskilled employment opportunities. The Ministry of Statistics and Programme Implementation reports that the construction sector, which includes infrastructure, employed 64 million people in 2019-20, making it the second-largest employer after agriculture.
Rural Development: The Pradhan Mantri Gram Sadak Yojana (PMGSY) has connected over 97% of eligible rural habitations with all-weather roads since 2000. This has improved rural access to markets, healthcare, and education, promoting inclusive growth.
Digital Infrastructure: India's digital infrastructure has grown rapidly, with internet penetration increasing from 27% in 2015 to 47% in 2021, according to the Telecom Regulatory Authority of India. This has enabled financial inclusion through initiatives like the Jan Dhan-Aadhaar-Mobile (JAM) trinity, benefiting over 450 million people.
Energy Access: The government's push for universal electrification has resulted in 100% village electrification by 2018. The Saubhagya scheme has provided electricity connections to 28 million households since 2017, improving quality of life and enabling economic activities in rural areas.
Urban Development: The Smart Cities Mission, launched in 2015, aims to develop 100 cities with improved infrastructure. As of 2023, over 7,900 projects worth ₹1.93 lakh crore have been completed or are in progress, enhancing urban living conditions and economic opportunities.
As India aims to become a $5 trillion economy, continued focus on infrastructure investment will be crucial in achieving this goal while ensuring that the benefits of growth reach all segments of society.
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