Posted By:Infra Bazaar
Infrastructure and economic development of a country are interdependent on each other. Just like how we discussed in our previous blog post, A country’s GDP is highly affected by its Infrastructural investments and its efficient working.
Economic development starts with increased productivity and connectivity of the workforce. The connectivity of rural to urban areas, the MSMEs to the metropolitan cities and transport helps save time, energy and reduces costs of the enterprises. Apart from this, the country’s infrastructure efficiency and condition opens gateways to foreign trade and travel. This only adds to the country’s economic as well as overall development.
Government bodies on realizing the importance and dependency of the country’s economy on infrastructures have devised several plans and investments for the same. Numerous projects focusing on supply of power, energy, water, and transport have been prioritized by the Government.
These projects apart from providing citizens with power, energy, water supply and better transportation facilities also offer plenty of employment opportunities that sustain their livelihood. They serve to protect struggling communities, offer a means of equality, income, and reduce poverty rate in the country.
How Government Plans to Create Employment Through Infrastructure
With projects like railways, airport, ports, public transport and more, the Government seeks to employ people. Infrastructure has proven to be a source of employment that helps revive the economy.
According to Forbes, Railways alone employs over 1.54 million people, making it the seventh-largest employer in the world. According to Statisa , Indian aviation industry employed over 65 thousand airline personnel in the financial year 2018. Many such industries like telecommunications, power and energy supplies and imports & exports and more employ millions of individuals offering a source of income to them as well a source of economic
development to the overall country.
Government organizations believe that during a crisis like Covid-19 pandemic, it is wise to pay attention to the growth of small and medium business enterprises and rural development projects. According to the recent article on Livemint , Union Minister Nitin Gadkari discussed the growth
of infrastructures to revive the economy of the country.
He said, “Building infrastructure in areas such as water, power transport, and communication, will lead to setting up of industries, which will attract investment, create employment opportunities, and ultimately boost out gross domestic product (GDP) growth,"The Government also expressed its concerns to grow and develop the rural, agricultural and tribal areas where micro, small, and medium enterprises (MSMEs) play a prominent role. This is because MSMEs create over 28% of the overall GDP of the country, accounting more than 40% of the exports. MSMEs are a crucial part of the Indian economy as they provide job opportunities to over 111 million people of this country. Which comes to no surprise, why this is a pressing issue currently.
With the rise in Covid-19 cases and strict rules of the pandemic, life has come to a standstill to many. With loss of jobs, and incomes cut-down, the future appears bleak for a majority portion of the country. While the government is trying its best to bring the virus under control, it is simultaneously taking efforts to revive the economy back on its feet with various projects among which infrastructure is a prominent one of the many.
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