DMPQ- Write a short note on Infrastructure sector.

Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development. India was ranked 44 out of 167 countries in World Bank’s Logistics Performance Index (LPI) 2018. India ranked second in the 2019 Agility Emerging Markets Logistics Index.

The government recently announced a big 1.02 trillion infrastructure spending plan for the next five years, from 2019-20 to 2024-25. The National Infrastructure Pipeline (NIP) captures the infrastructure vision of the country for the period FY20-25 and is the first-ever such exercise undertaken.

For smooth and fast development, India needs adequate and timely investment in quality infrastructure. Well-developed infrastructure enhances the level of economic activity, creates additional fiscal space by improving the revenue base of the government, and ensures the quality of expenditure focused on productive areas.


There is a need to develop a robust bond market for infrastructure companies, speedy resolution of infrastructure disputes, optimal risk sharing through better and balanced PPP contracts, and sanctity and enforceability of contracts. India needs to ensure that infrastructure and infrastructure-related businesses have ease of access to inputs at appropriate price levels. There is a need to simplify administrative procedures to make them more responsive, yet robust.


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