Economics (NCERT) Notes

6.5 Infrastructure and Economic Development

Composition of Infrastructure Requirements


• For low-income countries, basic infrastructure services, like irrigation, transport and power, are more important.


• As economies mature, the share of agriculture in the economy shrinks and more service-related infrastructure is required.


• Gradually, the share of power and telecommunication infrastructure is greater in high-income countries.


 


Infrastructure and Economic Development


• Development of infrastructure and economic development go hand in hand.


• Agriculture depends, to a considerable extent, on the adequate expansion and development of irrigation facilities.


• Industrial progress depends on the development of power and electricity generation, transport and communications.


• If proper attention is not paid to the development of infrastructure, it is likely to act as a severe constraint on economic development.


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