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Infrastructure: Role in Economic Development

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Infrastructure Definition

Infrastructure is the set of 'fixed' structures needed for a society to function. The term infrastructure may include things like roads, sewer networks, bridges, dams, water supply systems, and power lines. The infrastructure of a society is usually designed and built to meet the needs of the population at large. Infrastructure is a critical part of any society, and its neglect can cause great harm. Infrastructure is often expensive to build and maintain, but it is essential for the smooth functioning of a society. In some cases, the failure of infrastructure can have disastrous consequences. For instance, a flood caused by a failure of a dam could cause widespread death and destruction.


Role in Society 

The role of infrastructure is to transport resources (e.g., water or electricity) from where they are generated or collected to where they are used. Infrastructure might be fixed (i.e., man-made structures like roads and bridges) or mobile (i.e., process systems like pipelines).


Infrastructure is critical to modern society and has an important role in establishing social order. Infrastructure is often one of the first things that a new society builds, and it can help determine how that society develops. For example, if a country lacks any structures for transport or communication, then its economy will not be able to function in the modern world.


Development of Infrastructure 

The need for infrastructure has been recognized for centuries. The ancient Romans were some of the earliest builders of infrastructure, constructing roads, bridges, and aqueducts that are still in use today. In more recent times, the development of infrastructure has been driven by the needs of industry. The growth of the railroad system in the 1800s, for example, was spurred by the need to move goods and people around the country quickly and efficiently.


Modern Infrastructure 

Today, infrastructure is a vital part of our economy and our way of life. The development of new technologies has created new demands for infrastructure, and the aging infrastructure of many developed countries is in need of replacement or renovation. In addition, the growth of cities and the increase in international trade has placed new strains on our infrastructure.


The Importance of Infrastructure 

Infrastructure is important for a number of reasons. First, it plays a vital role in our economy. The transportation, communication, and energy systems in the U.S. directly support our economy by facilitating trade and helping businesses move their products to market. They also support our lifestyle needs by making it easier for us to get where we need to go - whether that's work in our own town or another city across the country.


The Following Table Illustrates the State of Rural Infrastructure in India:

Rural Infrastructure In India

  • Heavily Reliant on Bio-Fuel

  • Almost No Access to Clean Drinking Water

  • Absence of Proper Sanitation Amenities

  • Lack of Electricity Connections

  • Rural families in India still use bio-fuel such as crop residues, methane gas, and cow-dung to cook food.

  • Only 24% of rural families have access to clean drinking water

  • Proper sanitation facilities are almost absent in rural areas

  • According to the 2001 census, only around 56% of rural families had electricity connections

  • The majority of rural households, almost around 90 percent, employ bio-fuels for cooking.

  • The gaping majority use open sources of water, for instance, water from tube wells

  • According to NSSO, only 6% of rural areas have access to proper sanitation facilities

  • The rest use kerosene.


What is the future of Infrastructure in India?

According to a World Bank report in 2014, India was well-set to become the third-largest economy in terms of purchasing power in the world. But to ensure reaching that goal, the state of infrastructure in India will have to improve drastically. 


To ensure the creation of more economic corridors in India, the government has created multiple Special Economic zones or SEZs. Such zones comprise places in India with the most economic potential, where foreign investments can be made, and investors and companies are given free rein to conduct business operations. SEZs are vital for the growth of a country’s GDP, and it is important for the country to substantially improve its infrastructure to attract more FDI to its shores.


The various infrastructure examples in India that, if improved, can greatly improve the state of things include roads, highways, technological spaces such as IT parks, seaports and harbors, cold storage, railways, and warehouses.


Let’s go back to some key concepts by carrying out the following activity:

The task for you:

  1. Go online and search Google for the various types of infrastructure found in India and the world, and how they are beneficial.

  2. Look up the meanings of terms such as Special Purpose Vehicles (SPV), Build Operate Transfer (BOT), and Private Public Partnership (PPP).

  3. Find and list out all the SEZs in India and find out about their infrastructure and machinery in detail.


Learn with the best notes, reference guides, and sample videos on our website. Enjoy free live classes, doubt clearing sessions, and have fun while doing so, on the Vedantu app today, available on Google Play.

FAQs on Infrastructure: Role in Economic Development

1. What is the definition of infrastructure in terms of agriculture?

Infrastructure in the agricultural sector generally refers to the physical plants and facilities that are necessary for the operation of a farm or ranch. This includes things like barns, fences, silos, grain bins, irrigation canals or ditches, roads, and much more. Infrastructure in this context refers to "the basic physical and organizational structures and facilities needed for the operation of a society or enterprise." In other words, it's the underlying foundation that is required for any successful operation of an enterprise or society.

2. What is the definition of infrastructure in terms of transportation?

Infrastructure in the transportation sector generally refers to the roads, bridges, tunnels, and services that allow an efficient transportation system to function. Many highways and rail lines fall under this category, as well as airports and seaports. It also includes public transportation, such as buses, subways, and trains. Infrastructure in this sense refers to the "physical components of interrelated systems providing commodities and services essential to support, operation, growth, development, and maintenance of life within a community." In other words, it's the system that allows societies or enterprises to function.

3. What is the definition of infrastructure in terms of tourism?

Infrastructure in the tourism sector often refers to the physical facilities that are necessary for a hotel, resort, or other business in the hospitality industry. This includes things like chairs, tables, signs, walkways, parking spaces, and much more. Generally speaking though, infrastructure in this context refers to "the basic physical and organizational structures and facilities required for the operation of a sector, function, or phenomenon." In other words, it's all of the underlying infrastructures that allow an operator to function.

4.  What is the definition of infrastructure in terms of education?

Generally speaking, infrastructure in education refers to the physical and organizational structures that are necessary for a school to operate. This includes things like classrooms, libraries, laboratories, and dining halls. It also includes the administrative buildings, such as the principal's office and the registrar's office. Infrastructure in this context refers to "the basic physical and organizational structures and facilities required for the operation of a sector, function, or phenomenon." In other words, it's all of the underlying infrastructures that allow an operator to function.

5.  How is infrastructure important in India?

India is a growing country, and as it grows, the need for better infrastructure increases. India has a lot of people, and with so many people, there needs to be a lot of infrastructures. India also has a lot of businesses, and with so many businesses, there needs to be a lot of infrastructures. Without good infrastructure, India will have trouble continuing to grow and prosper. India has an abundance of different types of infrastructure. Every business in India is considered to be an industry, so the industry for which this article is written falls under Infrastructure. The word "infrastructure" is a big word and it has a big meaning. According to Investopedia, the word infrastructure is defined as "the basic physical and organizational structures and facilities needed for the operation of a society or enterprise." In other words, infrastructure is the foundation that is required for any successful operation. There are many different types of infrastructure, and each one is important in its own way.

6. What is the Meaning of Infrastructure?

The word infrastructure means basic and physical structures which constitute the landscape of an area. Broadly, infrastructure is defined by the concrete physical structures such as buildings and roads which compose our living spaces, offices, cities, and many other places.

7. What are the Types of Infrastructure?

The two types of infrastructure are social and economic infrastructure.

8. What are Special Economic Zones in India?

Special Economic Zones or SEZs comprise places in India with the most economic potential, where foreign investments can be made, and investors and companies are given free rein to conduct business operations. SEZs are vital for the growth of a country’s GDP, and it is important for the country to substantially improve its infrastructure to attract more FDI to its shores.