Of late, there has been a greater emphasis on infrastructure development in the developing economies, as economic development is directly linked with the availability of right quantity and quality of infrastructure. Non-availability of requisite quality of infrastructure affects all the sectors of economy i.e. agriculture, industry, imports and exports, standard of living and per capita income, etc. India’s economy since 90s has slowly moved towards urbanization as the urban contribution to GDP rose from 38% in 1970s to 46% in 1990 to 58% in 2008 and has been forecasted to rise to 70% by 2020. Government of India, as per suggestions of Rakesh Mohan Committee, has been allocating sufficient funds for development of infrastructure of mega cities, metro cities, class I cities and other categories of towns through various schemes and mission mode projects like scheme for infrastructure development of satellite towns of mega cities, JNNURM, Smart city, AMRUT, etc.
The budget speech 2020-21 had ‘Infrastructure’ at second priority after ‘Industry, Commerce and Investment’ as utmost essential for economic development of the country. Finance Minister reiterated the launch of National Infrastructure Pipeline on 31st December 2019 with budget allocation of Rs. 103 lakh crore as the follow up of PM’s speech of 15th August 2019 wherein PM had committed an investment of Rs. 100 lakh crore on infrastructure over the next 5 years. Allocation of funds for infrastructure is insufficient as assessed by Economic Survey 2018-19. India needs to spend USD 200 billion annually on its infrastructure, but has been able to spend only USD 100-110 billion annually. This huge amount can be raised if and only if flow of private capital into infrastructure increases. Private investment in infrastructure mainly comes in the form of PPP.
In above context the stream covers the vital contribution of infrastructure to global economy in general and Indian economy in particular; contemporary and innovative project formulation and management techniques with examples of regional level physical infrastructure i.e. inter-city networks of roads, rails, power supply, etc. Central and state government initiatives for infrastructure development are also discussed. Further, the stream discusses options of financing infrastructure development with special focus on public private partnership options along with illustrations.