Question

“In the past few decades, the Indian economy has been fairly benefitted by positive externalities created by the rapid rise in infrastructure.” Justify the given statement with valid arguments.

Hint:

Infrastructure development has a multiplier effect on the economy, leading to long-term growth.

Answer 1

The rapid development of infrastructure in India has contributed significantly to economic growth by: Connectivity: Improved road, rail, and air connectivity has reduced transportation costs and increased accessibility for goods and services. Employment: Infrastructure projects create direct and indirect employment opportunities. Industrial Growth: Better infrastructure facilitates the setup of industries in remote areas, promoting balanced regional development. Foreign Investments: Modern infrastructure attracts foreign direct investments (FDI) by providing a conducive business environment. These positive externalities have enhanced productivity, boosted trade, and improved the quality of life for citizens.