Infrastructure Class 12 Economics

Introduction

Types of infrastructure

• The term "economic infrastructure" refers to a set of essential components that support the process of economic growth, such as transportation, communication, and electricity. These components play a crucial role in promoting economic development and improving the living standards of people.
• "Social infrastructure" comprises essential elements of social development, including schools, colleges, hospitals, and banks. This infrastructure serves as a support system for the social development process of a country, with a focus on developing human resources. By fostering the development of trained, healthy, and efficient individuals, social infrastructure accelerates the human development process.

Difference between Social and Economic Infrastructure

The importance of infrastructure

• Enhance productivity: Infrastructure plays a crucial role in enhancing productivity by improving transportation, storage, and other necessary facilities. Improved infrastructure such as roads and warehouses can facilitate the selling of products in various markets, making it easier for farmers to access more customers.
• Expand market size: Infrastructure can also help to expand the market size by enabling mass production, which can lead to the occupation of more markets.
• Boost work efficiency: Social infrastructure can improve the quality of life of workers, resulting in increased efficiency. Health centers, educational institutions, and similar facilities can equip workers with necessary skills, enhancing their work capacity and efficiency.
• Foster outsourcing: India has become a global outsourcing hub for various types of services such as call centers, learning centers, etc., thanks to the availability of modern infrastructure.
• Strengthen production linkages: Infrastructure such as transportation, education, banking, and financial systems can create better linkages among industries, resulting in enhanced production.

State of India's infrastructure

Energy is a critical component of all production activities and is essential to any form of production. The sources of energy can be categorized as follows:

• Conventional Energy: These are the well-known and widely used sources of energy such as coal, oil, natural gas, and electricity. They can be classified into two categories:
  • Commercial Sources: Coal, oil, and electricity are considered commercial sources.
  • Non-Commercial Sources: Agricultural waste from firewood and dry manure are considered non-commercial sources.
• Unconventional Energy: These are newly discovered or explored sources of energy that have not yet been widely used.

Energy/Electricity

• Electricity is often seen as the most fundamental form of energy and is considered essential for modern civilization. However, the power industry in India faces several challenges, including:
• Insufficient installed power generation capacity: India's current installed capacity of 20,000 MW is not enough to support a 9% economic growth rate, and even this capacity has not been fully utilized.
• Inefficiencies in the distribution system: Transmission and distribution losses, incorrect electricity pricing, and other inefficiencies have led to losses of more than 500 million for the National Electricity Board (SEB), which is responsible for distributing electricity.
• Limited private sector participation: Private sector power generators and foreign investors have not yet played a significant role in the Indian power industry.
• Public dissatisfaction: Due to high electricity prices and prolonged blackouts in various regions of the country, the public is often dissatisfied.
• Shortage of raw materials and coal: Thermal power plants, which are the backbone of India's energy sector, face a shortage of raw materials and coal.

Health

Status of the health infrastructure

• Although health services have significantly expanded and health indicators have improved in India since independence, they are not enough to meet the needs of the rapidly growing population.
• The public health system and facilities are inadequate to cater to the requirements of the majority of the population.
• There is a significant disparity in the utilization of medical and health facilities between the rich and poor and between urban and rural areas.
• The health of women in the country has become a matter of great concern, with reports of increasing female abortions and mortality rates.
• A well-regulated private sector in health services can help improve the situation. Additionally, NGO and community involvement are crucial in delivering health services and creating awareness about health.

Conclusion 

• For a country's development, infrastructure, both economic and social, plays a vital role. It serves as a support system that directly impacts all economic activities by enhancing the productivity of production factors and improving the standard of living.
• India has made significant progress in building infrastructure in the six decades since gaining independence, but the distribution is not uniform.
• Numerous rural areas in India lack good roads, telecommunication facilities, electricity, schools, and hospitals.
• With India's modernization, there is an increase in demand for quality infrastructure, with a focus on environmental impact.
• Reforms policies aim to entice private sectors, including foreign investors, by providing various concessions and incentives.
• While assessing the two infrastructures, energy and health, it is evident that there is a need for equal access to infrastructure for everyone.
• Public health services' decentralization can provide all citizens with better healthcare facilities since health is a critical public good and basic human right.
• Education and efficient health infrastructure are crucial for a long-term battle against diseases.
• It is essential to create awareness of health and hygiene and provide efficient systems, with the telecom and IT sectors playing a vital role in the process.
• Primary healthcare is pivotal in the effectiveness of healthcare programs, and the ultimate goal should be to improve people's quality of life.
• There is a significant disparity between urban and rural healthcare in India, and ignoring this divide could destabilize the country's socio-economic structure.
• To ensure basic healthcare for all, accessibility and affordability must be integrated into India's basic health infrastructure.