Presenting a story of infrastructure development in India since the inception of economic liberalization, this paper highlights various challenges that discourage private sector investments, thus providing a rationale for policy initiatives by the government.
Authors
Kewal Singh, Assistant Professor, Jindal School of Banking & Finance, O.P. Jindal Global University, Sonipat, India.
Anoop Singh, Centre for Energy Regulation, Department of Industrial and Management Engineering, Indian Institute of Technology Kanpur, Uttar Pradesh, India.
Puneet Prakash, Department of Finance and General Business, Missouri State University, Springfield, Missouri, USA.
Summary
The infrastructure sector is one of the major pillars for economic growth and development of a country. The responsibility to develop this crucial sector is shifting away from the public to the private sector. After the economic liberalization in 1991, India opened the infrastructure sector, among many others, to private domestic and foreign investment.
The shortage of electricity, the poor state of roads, and limited telecom access necessitated a stream of persistent reforms, which were expected to play a significant role in the infrastructure sector’s growth. Although some subsectors witnessed success, others continued to face hurdles.
The paper highlights the role of infrastructure in socio-economic development through global literature. It also presents a story of infrastructure development in India since the inception of economic liberalization. It highlights various challenges that discourage private sector investments, thus providing a rationale for policy initiatives by the government.
The paper also presents critical issues highlighted by multiple government committees over nearly three decades and identifies residual issues that merit attention. The outcomes of the paper are relevant in the context of developing and emerging economies.
Published in: Journal of Public Affairs
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