International Journal of Applied Research
Vol. 1, Issue 1, Part B (2014)
Infrastructural development is the key to higher growth rate in India
In recent years, infrastructural development has become the core area of focus of the Government to achieve higher growth rate in the economy. The major hindrance and bottleneck to higher growth in India is deficit of better infrastructure facilities. With huge size of market and becoming the largest democracy in the world India fails to increase its manufacturing base to make its exports cost competitive in international market. Not only Rising cost of production which is one of deterring factor of declining India’s share in world export market but also one of the preventing factor to inflow of FDI to the country. Giving acceleration to the growth of GDP requires better infrastructure facilities, so in a capital deficit country where infrastructure needs long gestation period investment with huge capital so the option left with the Government is to mobilize sufficient funds through bonds, raising capital from the capital market, allowing PPP(Public Private Partnerships) model by making policy more transparent for private players and attracting FDI(Foreign Direct Investment) into infrastructural projects. This paper highlights, various issues related to infrastructural development.
How to cite this article:
Swagat Rout. Infrastructural development is the key to higher growth rate in India. International Journal of Applied Research. 2014; 1(1): 47-48.