infrastructure & economic develpment of a country

8/9/2019 infrastructure & economic develpment of a country

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HOW INFRASTRUCTURE DEVELOPMENT IS

AFFECTING THE ECONOMIC DEVEOMENT

Presented byAbdul Hakheem.VP

Roll No:01

S4,MIB


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QUOTE BY Dr. V.K.R.V. RAO

The link between infrastructure and economic

development is not a once and for all affair.

It is a continuous process; and progress in

development has to be preceded, accompanied,

and followed by progress in infrastructure, if we

are to fulfill our declared objectives of generating

a self-accelerating process of economic

development.


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Infrastructure definitions

Oxford dictionary

Basic structural foundation of a society or enterprise.

roads, bridges, sewers etc regarded as a countrys economic foundation..

3

WHAT DOES INFRASTRUCTURE COMPRISE OF?

Irrigation and flood control.Energy: coal, electricity, oil & non-conventional sources.Transport: Railways, roads, shipping & civil

aviation.Communications: P&T, telephones,telecommunicationBanking, finance and insurance.


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Infrastructure and

Development Infrastructure represents those types of capital goods that

serve the activities of many industries.

The quality of an infrastructure directly affects a countrys

economic growth potential and the ability of an enterpriseto

engage effectively in business.

The less developed a country is the less adequate the

infrastructure is for conducting business.

Countries begin to lose economic development groundwhen

their infrastructure cannot support an expandingpopulation

and economy.


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Growth ofInfrastructure since

Independence

Heavy investments by Government on

infrastructure facilities has resulted in threefold

rise in agricultural production and sevenfoldrise in industrial production in last six decades.

Infrastructure development has an urban bias

(power, transport, communications, banking

etc). This led to inadequate development andhence inadequate employment opportunities in

rural areas.


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Growth ofInfrastructure since

Independence (Contd)

Infrastructure development has also shown abias in favor of rich and more affluent

(power, transport, communication, healthetc). Even in rural areas the major irrigation

projects have benefited the rich farmers.


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Trends inperformance ofInfrastructure

Sectors

Item Unit 1950-51 2006-07

Coal Million tons 32 462

Elec Gen Billion kwh 5 663

Crude oil Million tons 0.4 34

Cement -do- 2.7 154


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Trends inperformance ofInfrastructure

Sectors

Item Unit 1950-51 2006-07

Steel Million tons 1.0 50

Rail goodstraffic

-do- 73 728

Cargo ports -do- 19 464

Telephoneprovided

Millions NA 272


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Energy

Availability of energy is the single largest

factor which can act as constraint in the

economic growth of a country. India

Seventh largest energy producer.

Fifth largest energy consumer.


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Energy

Sources of energy

Availability of primary energy in India

Non-commercial energy resources in India

Non-conventional sources of energy in India

Trends in consumption of commercial energy

since 1950-51 Energy crisis:The genesis


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Energy (Contd)

The nature of energy crisis

Measures to tackle energy problem in India

Green power and bio-fuels

Rural energy crisis and decentralized energy

Wanted a national cooking policy


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Sources of Energy

Commercial sources of energy

Coal

Petroleum Electricity

Accounts for 50% of all energy consumption inIndia

Exhaustible/ non-renewable


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Sources of Energy (Contd)

Non-Commercial/ traditional sources ofenergy Firewood

Vegetable wastes

Dried dung

Supposed to be free

Renewable

More than 60% of Indian households depend fortheir cooking & heating needs


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Oil and gas

Net recoverable oil reserves l 550 mil tons

Net recoverable gas reserves 500 bil cum

Oil may last only 20-25 years


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Electric Power

Thermal power generated out of oil and gasand nuclear energy.

Potential for hydroelectric power is 90,000MW annually, whereas only 18,000 i.e. 20%tapped.

Share of total power produced

17% hydel 80% thermal

03% nuclear


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Electric Power (Contd)

Considering the rich reserves of uranium &

thorium, potential for nuclear energy in India

is bright. There is acute shortage of power in India.

Hydel and nuclear potential will have to be

tapped to gap this shortage.


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Non-commercial Energy Resources

Fuel wood. 65% of total rural energy consumption.

Fuel wood might be greater concern than foodgrain in near future.

Agricultural Waste.(straw)

Animal Dung

Used as fuel in rural areas. 73 million tons burnt per year, which is more than

fertilizer produced.


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Non-conventional sources of

Energy Solar energy and wind energy.

Potential unlimited but not yet fully tapped in

India due to absence of cost effectivetechnologies.

Tidal Energy


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Sectoral trend in commercial energy

consumption ( in %age)

1953-54 1970-71 2005-06

Household 10 12 12

Agriculture 1 3 9

Industries 40 50 42

Transport 44 28 22

Others 5 7 15

Total 100 100 100


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%age share of different fuels in

commercial energy consumption

1953-54 1970-71 2005-06

Coal 80 56 29

Oil and gas 17 35 54

Electricity 3 9 17

100 100 100


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POWER

. Sources

. Hydel power

Thermal power

Nuclear power

Targets & achievements

Chronic power shortage in India

SEBs, problem institution in power sector Private sector reforms

Rural electrification


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Patternof electricity consumption (per

cent)

1950-51 1970-71 2009-10

Industry 63 68 40

Agriculture 4 10 21

Railways 7 3 4

Public

lighting

13 10 12

Domestic 13 9 24

Total 100 100 100


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Growth ininstalled capacities of

various sources ofpower in 1000 MW

Year Hydro Thermal Nuclear Total

1950-51 0.6(33) 1.1(67) - 1.7

1970-71 6.4(43) 7.9(59) 0.5(2) 14.7

2000-01 25.1(25) 73.6(72) 2.9(3) 101.6

2006-07 34.7(26) 93.7(70) 3.1 132.5


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RAILWAY

63140 KM ..

6 MILLION PASSENGERS

350 M FRIEGTANNUALLY

4 METROS


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ROAD TRANSPORTRATION FACTS

About 65% of freight and 80% passenger

traffic is carried by the roads.

National Highways constitute only about 2%of the road network but carry about 40% of

the total road traffic .

Number of vehicles has been growing at an

average pace of 10.16% per annum over thelast five years.


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INDIAN ROAD ACCESS

SECOND LARGEST IN THE WORLD

LENGTH(IN KM)

1. EXPRESSWAYS 2002. NATIONAL HIGHWAYS 66,590

3. STATE HIGHWAYS 1,28,000

4. DISTRICT ROADS 4,70,000

5. RURAL ROADS 26,50,000


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INDIA ACCESS CONTD.

Road density in terms of

POPULATION - 2.56road km/1000people

LAND - 768road km/1000 sq.km land


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AIRPORTS:14INTRNL,

45-DOMESTIC Top 10 Airlines Companies of India

IndianAirways

Kingfisher Air India.

Air Deccan

Lufthansa IndiaAirlines

Air Sahara.

IndiGo AllianceAir.

ParamountAirways Private Limited

JetAirways


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Revenue in telecommunication

sector According to a Frost & Sullivan industry analyst, by 2012,

fixed line revenues are expected to touch US$ 12.2 billionwhile mobile revenues will reach US$ 39.8 billion in India.India has become the second country in the world to have

more than 100 million CDMA-based (code division multipleaccess) mobile phone subscribers after the US, which has157 million CDMA users. The Indian telecommunicationsindustry is on a growth trajectory with the GSM operatorsadding nearly 9 million new subscribers in April 2009,taking the total user base to 297 million, a growth of 3.11

per cent over the additions made the previous month. Thefigures, however, do not include the GSM subscriberadditions made by Reliance Telecom.


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The top players in the industry are:

1) Reliance Communications Limited2) Bharti Airtel Limited3) BSNL

4) MTNL5) Hutchison Essar6) Ericsson7) Nokia8) Siemens Communications9) Idea Cellular Limited10) Tata Teleservices


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Banking sector

RBI data says that there are 171 different banks that operate in India, as on June 08.Together, these banks have 76,003 reporting offices across the country.

as on June 08

No. of BanksAll Scheduled CommercialBanks 66 Regional RuralBanks 88 Other

scheduled commercial banks78 Non-Scheduled CommercialBanks5 Total171No. of reporting officesRural30,955 Semi-Urban17,771 Urban14,412 Metropolitan12,865 Total76,003% annual growth across population groups

(last quarter)

RuralAggregate Deposits21.1 GrossBank Credit19.4Semi UrbanAggregate Deposits19.3 GrossBank Credit21.5UrbanAggregate Deposits24.4 GrossBank Credit23.8MetropolitanAggregate Deposits21.9 GrossBank Credit2


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Insurance sector

life insurance premiums account to 2.5% and

general insurance premiums account to

0.65% of India's GDP allowing FDI up to 26%

Now 47 pvt & public cos


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