Economic Infrastructure

Posted in Finance, Accounting and Economics Terms, Total Reads: 4043

Definition: Economic Infrastructure

Economic infrastructure refers to the all the internal services provided by the country in order to facilitate business activity, production and consumption. These services are vital for the economic growth and GDP of a nation since it attracts the investors to invest in setting up firms in the country. The services includes power, water, electricity, gas, roads and railways, airports and ports, sewage, banking, investing etc. Corporations often treat these services as an indicator to analyze the right time to enter a country to start a business.

Let us discuss in brief about the few services and where India as a nation stands in its development.

1. Banking and Investing: India in a few decades have tried to improve on this field. The start of various private banks and foreign banks is the sign of development. India is trying to attract as much FDI as possible by formulating simpler rules for easy of doing business.

2. Transportation: Transportation has shown tremendous growth and today India has one of the best well connected transport network. With the start of plans like golden quadrilateral, electrification of railways, four lane and eight lane highways it becomes easy for corporates to reach their customers.

3. Telecommunications and Internet: India has improved the most in this field in a span of 10 years. Now every nook and corner of the nation has access to mobile network and internet. India allowed many foreign telecom players to start business in order to develop quickly. And India have achieved it in quite less time than expected. Now India is No.1 choice of many investors due to robust technology.

4. Power and Electricity: Although cities have electricity, but millions of villages and remote areas are still left for electrification. India needs to focus on power and electricity since it lags behind other nations in this field particularly.

With huge natural resources, human resource India is becoming the next big market player. If the economic infrastructure is improved as expected then India might even become best destination for investors soon.

Hence, this concludes the definition of Economic Infrastructure along with its overview.

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