Financial Development and Economic Growth in India
by Pooja Late so cutIndia as a nation is under an infrastructural
crossroad. There has been growth in the demand for a critical infrastructural system with the tireless growth of the country thereby racing ahead of its capacity
in delivering the required number of houses, power plants, and waste collection
facilities. The economy of India has been tagged as one of the fastest growing
large economies in the world. Nevertheless,
things are changing fast and the potential of tapping into international
markets and bringing forth new sources of expertise and capital with improved
delivery capacity has improved tremendously. There is a need for India’s infrastructure to meet up with the pace of
world-class infrastructure as in developed nations. Even as India’s economy is
growing fast, this has contributed in making it an attractive spot for
investors, who have realized that India is a country with healthy pipeline
coupled with good potential partners. In spite of this, there are some
challenges faced by India in the quest of building excellent infrastructure.
Challenges at home
It can’t be denied that India does face its own infrastructure challenges. Which country can you
single out that doesn’t go through this?
It doesn’t mean that the case in India is more prevalent; however, density and
poverty are the key issues that have made
it be more pronounced when compared to
other countries. The underlying question at hand is how do one highlight the
infrastructural need of many with limited financial resources? An economic
enabler is an infrastructure and not a panacea. It is the summation of the different
physical interdependencies, which make up
the key services provider by the government.
It is important to note that these services aren’t responsible for creating an economy rather they help in
facilitating the economy. The primary aim of building infrastructure is to
ensure that people become not just efficient but productive with their time.
Well, if you have been in a traffic jam –
whether in Rome, New Delhi, or Los Angeles you will understand and appreciate
that.
This has led to the question as to what does good
infrastructure planning, delivery and operation look like. Starting with a
national infrastructure plan, the preparation and prioritization of project
lies in the jurisdiction of the state in India but must be approved by the central
government. A single window process is needed for the planning and approval in
order to reduce the bureaucratic procedures. For ensuring this is actualized, there is a need for the implementation of a national
infrastructure plan. According to reports,
there is a unit established by the Ministry of Finance for the examination, approval, and financing of public-private
partnership projects. But an empowered infrastructure unit would go a step
further: it would oversee and coordinate the country’s development and
execution strategy across the traditional silos of government.
Author’s Bio
Vincent Finch in this post looks at some of the keys
to building an excellent infrastructure
in India and how it is key to the improvement of the economy. He also spoke of
the importance of finance development
in supporting the government.
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Created on Nov 9th 2017 03:13. Viewed 524 times.