Discuss the importance of infrastructure

Question Discuss the importance of infrastructure.
Chapter Infrastructure
Class  Class 12
Subject Economics (Indian Economic Development)
Category Indian Economic Development Class 12 Sandeep Garg Solutions




Question – Discuss the importance of infrastructure.

Answer –

1. Agricultural Development

Infrastructure plays a critical role in the development of agriculture in the following ways,

  1. Agriculture output depends on the expansion and development of permanent irrigation facilities.
  2. Modern agriculture largely depends upon the speedy and large-scale transport of agricultural inputs like seeds, pesticides, fertilizers, etc.
  3. Modern transport facilities also facilitate agriculture marketing.
  4.  The agriculture sector also depends on banking and insurance facilities for credit requirements.

Thus, agricultural development and growth exclusively depend on infrastructural development.

2. Industrial Development

Industrial development also depends on the development of infrastructure. In other words, there is a direct relation between infrastructural development and industrial development.




  1. Various means of transportation facilitate the supply of raw material and tour force.
  2. Transportation also facilitates the marketing of finished products at far-off places.
  3. Health and education facilities provide a skilled/ educated and healthy labour force.
  4.  Power meets the requirements of factories.
  5. Banking and finance facilities fulfil credit needs and encourage investment.
  6. These all generate inter industries linkage which means expansion of one industry facilitates the expansion of the other Economic growth becomes a dynamic process.

Thus, infrastructural development facilitates industrial development

3. Raise Productivity and Promotes Economic Development

The economic development/ growth of a country depends on the prosperity of all three sectors namely primary, secondary and tertiary sector.

  • Economic infrastructure like- transportation, communication, energy/ power, banking facilities, irrigation facilities, etc improves/ enhances the quality of economic resources and increases the efficiency of physical capital. Thus, raises productivity and reduces the cost of production.
  • Social infrastructure like- education, health, housing, sanitation and drinking facilities, etc enhances the quality of human resources and increases productivity and efficiency of human capital.

Thus, infrastructure enhances the productivity of all three sectors by increasing the efficiency of physical and human capital and promoting economic development.

4. Better Quality of Life

Well-developed infrastructure facilities like health, education, transportation, communication, etc. lead to a better quality of life.

  1. Education and health facilities produce literate/ educated, skilled, and healthy populations.
  2. Improvement in water supply and sanitation reduce morbidity (proneness to fall ill) from major water-borne diseases and also reduce the severity of diseases.
  3. Transport and communication infrastructure facilitate access to better health care and educational facilities.

Thus, infrastructure contributes to improving/ enhancing the quality of life of citizens of a country.

5. Provides Employment

Infrastructure development helps in generating/ creating employment opportunities by followings ways,

  1. People get employment in various infrastructural projects like construction and maintenance of roads, railways, electricity plants, etc.
  2.  Infrastructural development plays a critical role in the development of agricultural, industrial, domestic, and foreign trade and commerce which generates employment opportunities.

Thus, infrastructural development helps in generating employment opportunities directly and indirectly through the development of other sectors.




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