In What Way Are Infrastructure Funds Useful for Development?

By: Jake Hyet


The growing rate of investment in infrastructure development in India has played a vital role in the Indian economy, helping it to stay afloat through recent difficult times and promising more in the way of a sustainable future for some sectors of the Indian people. Here are some of the ways in which infrastructure funds are useful for development in India:

Telecommunications

It's a fact that corporations that want to expand globally need to completely scrutinize and appraise the economic infrastructure of the country they would like to invest in. This infrastructure includes many services a country offers to encourage business growth. Among these are power and electricity, telecommunications, gas roads, water, sewage and sanitation, railways, airports, and banking and investing.

While India has the advantages of a diverse population and there are several natural resources available, the nation still has a fundamentally weakened economic infrastructure. This is a major roadblock to greater economic growth. This is why India's government is emphasizing the necessity of obtaining investment in major infrastructure projects. The main area in which infrastructure development in India has been making substantial progress is in the telecommunications sector. This is because investors and the public both understand that telecommunications and the Internet are essential for the future growth and expansion of the country. In particularly India's young people are looking for jobs in the telecommunications industry in the hopes of achieving a better future.

Transportation and Power and Electricity

India's transportation infrastructure is composed of railways, ports, roads, and airlines. One accomplishment that the country has to be proud of is that they support the most extensive rail network in the entire world. However, this is mitigated by the seeming reduction in railway safety and a lack of investment. India is doing all it can to encourage the investment of infrastructure funds which are needed to improve roads, many of which are not properly maintained and where traffic is sometimes snarled for hours. Some infrastructure investment has already been helping to better the situation, as there are some major road projects taking place in India, but more needs to be done to bring the country's transportation network up to standards.

Also, India still suffers from power shortages. Although the amount of power generated in the entire country has continue to increase, there are still significant outages at various times throughout the country. India is struggling to remedy this problem, but the public sector simply does not have the money required to change things. This is another area where receiving funds for infrastructure is vital so that the country is able to support future economic growth. Any country with a weak power and electrical infrastructure has got to strengthen that base or risk losing out on opportunities for greater economic expansion. Businesses from foreign countries will be reluctant to invest in a country that can't provide enough electricity to ensure that all of the people who can afford it, and live in areas where it can be obtained can have it.

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Jake Hyet is considered an expert in Infrastructure Funds, and financial industry, having spent the last decade working in the Infrastructure Development in India and writing about these topics.

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