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Project on Infrastructure of Indian Economy

Meaning of Economy: -

Economy is a system by which people get a living. When we look at the world we find that different people are engaged in different types of work in the factory a shopkeeper sells his good to the Customer, a clerk works in an office, a teacher teaches in the classroom and so on. Have you even thought of it.

Why do all these people work ?

If you ask this question to anyone of them, you will get very simple and straight forward answer that we work to earn our live lined (or bread and butter). It means that different people are engage in different types of work in order to earns it by ding some Manual labour and somebody else doing by some other business. In order to perform the various types of jobs for livelihood, we require some sort of system, organization or structure to this we call an economy. Thus an economy is a system by which people get a living.

Meaning of Infrastructure :-

We know that the production of commodities requires a capital structure. When we talk about the capital structure of a country, we generally include in it factories, plants, machines, tools and all the other implements, which are required for the production of goods. But here we ignore a very important thing. Can any capital structure operate in itself or in isolation ? Does id not require transport facilities and to send finished goods to the Market centers communication facilities for the transmission of news and education facilities for the training of laborers etc ? Now perhaps you would have understand that for the production and disturbing goods as we require physical capital such as factories, plants, Machines, tools and implements etc. Simplify, we also require some services such as transport and communicate services. The services which help in the production and distribution process are called productive services.

With regard to services, we have to keep one more thing in mind i.e. as we consume physical goods such as wheat sugar, rice, watches and radio etc. we consume services also. For example we use transport services for tourism, housing services for accommodation health services for our health etc.

Hence, when a consumer directly consume some services for the satisfaction of his wants this services are known as consumption services. That is why we usually say that consumes require both goods and services for the satisfaction of their wants. Hence an economy on the one hand produces physical goods and other services.

The Need and Importance of Infrastructure :- Why Infrastructure is require in an economy or what is itís importance ? The following points indeed the need and importance of Infrastructure for an economy:

  1. Infrastructure helps in the efficient utilization of country resources. For instance we can better utilize agricultural land with the help of irrigation facilities raw materials and industries capacity of the country with the help of transport, communication ad power facilities, and countryís labour force with the help of education, training and health facilities.
  2. Extension of market goes along with development of transport and communication facilities. Now he sale and purchase of various communities become possible even in distinct places.
  3. This makes the supply of finoixe for economic development essay. If the monetary and financial institutions are properly developed in country, the various sector of economy can get finance easily and adequately. As a result of it finance does not remain the main hurdle in the development of any sector in the economy.
  4. This increases the efficiency of labour giviary of labour increase due to education training and health facilities. Transport facilities make it possible for the workers to go to the long distant places for warp, this increases their mobility.
  5. The development of the country largely depends on sound infrastructural facilities. whether it may be agriculture sector or the industrial sector. Without Infrastructure the output cannot be enhanced. Take the insiaxe of agriculture, If there is sufficient arrangement of irrigation in time it will boost up the agriculture production. Similarly industrial output also gets momentum with the help of power, transport and technical facilities.

Infrastructure of Economy

For the sake of convenience we generally classify the infrastructures of an economy in two groups :-

{A} Social Infrastructure :

This includes all those service facilities which includes the economic facilities indirectly. They are:

  • Education
  • Health
  • Housing

{B} Economic Infrastructure :

This includes all those facilities which influence the production and distribution system from within & directly. They are:

  1. Transport & Communication
  2. Power & Irrigation

The main difference between Social and Economic infrastructure is that Social Infrastructure Influences the production and distribution system from the outside while Economic infrastructure influences it from within being a part of the system itself. Let us study the components of social and economic infrastructure in detail:

Components of Social Infrastructure


What is the role of education in an economy? Does it produce any tangible commodity? No. Then why is it required ? No doubt, it imparts the skilled which increase. their efficiency and Productivity. Thus education is a Pro-request for process and development. And Perhaps, that is why every country tries to develop a sound and rational system of education for itís development.

Now we are interested to know the sale and aim of education in a country like India. The main aim of India education system are:-

  1. To Promote national Process.
  2. To development a sense of common civilization ship.
  3. To Produce skilled and trained manpower,
  4. To develop a scientific outlook and temper.
  5. To stimulate creative faculties.
  6. To Stronger then national integration.

The Present Indian educational structure can broadly be classified into three categories :

  • Elementary Education
  • Secondary Education
  • Higher Education

Economic Infrastructure :

Transport and Communication :-

Transport : Means of Transport are required mainly for two purpose for transport of physical goods and the transport of passengers. What type of transport means will be more appropriate for a particular Country ? This depends upon the relation between between different regions of Country.

In India various Means of irrigation can be grouped into three categories :-

  • Major Irrigation projects:- Major Irrigation Projects are the projects which cost more the Rs, 5 crores. e.g Big dams, Bakhra Nangal dams etc.
  • Medium Irrigation Projects:- Medium Irrigation Projects cost between Rs. 25 lakhs and Rs. 5 crores such as dams small canals etc.
  • Minor Irrigation :- Minor Irrigation Projects which cost less than Rs. 25 lakhs such as well, as tanks, canals etc.

Power (Electricity) :-

Electricity plays a crucial role both industrial and agriculture sectors That is why some people regarded and the consumption of electricity in the country as on important index of Producing and activity and growth. In view of this power development has been given high Priority in our development plans.

Power can be generated mainly from three sources :-

Coal, water and nuclear power. When power is generated from coal it is known as thermal power. When generate electricity from water of fast glowing river or dams it is termed by hydroelectric Power.

When Power is generated in nuclear Power station it is nuclear Power or atomic Power. In India we generate Power from these three main resources. Traditionally we had been generating electricity main from coal and even today thermal Power has the largest part in our total of generation of hydroelectricity has increased a lot. Our multipurpose river valley. Projects are used both for irrigation and power generation.

Basic Features of Indian Economy

Following are the basic features of the Indian economy :-

  • Mixed Economy
  • Federal Economy
  • Progressive character

1. Mixed Economy :- India is a mixed economy with large public sector. It is this Principle feature of the Indian economy which deferens it from other economies the world.

2. Federal Economy :- Indian constitution has accepted the federal set-up for the country. Because of this economic setup of the country is also federal in character. It implies that the government economics activities and institution operate at two levels Ė It central level and at straight level. Constitution itself has clearly disturbed the powers to regulate the economic life of the people between the center and the states.

3. Progressive character :- We know that India was badly exploited during the British rule. Because of this India had been reduced to a stagnant and backward economy. To pull up India from this state of backwardness, development plans, was started after independence. As a result of all these development plans, Indian economy has undoubtedly made some progress in many fields of the economy. There are number of things which suggest the progressive increase in Indiaís national Income and per capita income, development of basic industries, increase in agriculture practice expansion of irrigation.

Occupational Structure

Occupational Structure, Now, we shall study which sector of the Indian economy employs what portion of the working Population. The distribution of working population is of an economy in different occupation is know as occupation structure. Occupational structure indicates the structure of economic values. i.e. It tells us on what sector do the People of country depends for their livelihood. Besides this occupational structure also indicates structure also indicates the development of the economy.






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