Infrastructure Class 12 Notes Economics

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Subject Economics
Topic Infrastructure Class 12 Notes
Category CBSE Class 12 Economics Notes

Infrastructure Class 12 Notes




Infrastructure notes class 12

Infrastructure Definition Economics




Infrastructure refers to all such activities, services, and facilities that serve as support systems or foundations to the social and economic development of a country.” It provides supporting facilities/ services to the main areas of production such as agricultural production, industrial production, domestic and foreign trade, and commerce.

It includes roads, railways, ports, airports, dams, power stations, oil and gas pipelines, telecommunication facilities, schools, colleges, hospitals, sanitation facilities, drinking water facilities, banking facilities, insurance facilities, irrigation facilities, etc.

Some of these services have a direct impact on the production of goods and services while others give indirect support by building the social sector of the economy.

Difference between infrastructure and capital structure

The capital structure consists of factories, machines, farms, tractors, all types of equipment, etc required for the production of goods and services.

In another hand, infrastructure includes all supporting facilities/ services which facilitate the process of production.

For example-farm machinery is a part of the capital structure, whereas transportation of finished goods is a part of the infrastructure.

Types of Infrastructure

Infrastructure is broadly categorized into two parts.

(1) Economic infrastructure

Economic infrastructure refers to all such services, facilities, or activities that serve as a supporting system to the process of economic growth i.e., production and trade of goods and services.

It includes transportation, communication, energy/ power, banking facilities, irrigation facilities

Features

  1. It supports the economic system directly.
  2. It enhances the quality of economic resources and increases the efficiency of physical capital. Thus, raises productivity and reduces the cost of production.
  3. It increases the stock of physical capital assets.
  4. It promotes economic development.
  5. It increases the standard of life.

(2) Social infrastructure

Social infrastructure refers to all such services, facilities, or activities that serve as a foundation/ supporting system to process social growth or development.

It includes education, health, housing, sanitation and drinking facilities, etc.




Features

  • It enhances the quality of human resources and increases the productivity and efficiency of human capital.
  • It increases the stock of human capital.
  • It promotes economic development indirectly.
  • It supports the economic system indirectly.
  • It increases the quality of life

Relation between economic and social infrastructure

Economic infrastructure offers us robust sources of energy, better means of transportation and communication, an efficient system of banking and finance, etc.

All these services/ facilities which serve as foundation/ supporting system to the process of economic growth i.e., production and trade of goods and services are essential for economic growth.

But all these are not utilized if the bulk of the population of the country continues to be illiterate and ill because of lack of health including sanitation and drinking water facilities and education facilities which is essential for human capital formation. So, economic growth is incomplete without human capital formation.

Thus, economic infrastructure without social infrastructure has no meaning, and social and economic infrastructure are complementary to each other and vice-versa

Importance of Infrastructure – Infrastructure Class 12 Notes

Infrastructure class 12 notes assist students with knowing the importance of infrastructure in the following ways.

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 labor force.
  4.  Power meets the requirements of factories.
  5. Banking and finance facilities fulfill 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.

  • Education and health facilities produce literate/ educated, skilled, and healthy populations.
  • Improvement in water supply and sanitation reduce morbidity (proneness to fall ill) from major water-borne diseases and also reduce the severity of diseases.
  • 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.

6. EXPAND SIZE OF MARKET

Infrastructure not only plays an important role in the expansion of the market but also helps in creating a new market.

  • Strong support of efficient communication helps in publicity and brings together sellers and buyers and transportation facilitate transporting goods to far-off places.
  • Thus efficient infrastructure facilities facilitate increasing production to meet the growing needs of a bigger market.

7. PROMOTES INVESTMENT AND CAPITAL FORMATION

Strong support of infrastructure facilitates increasing/ raising productivity and production to meet the growing needs of the biggest market size.

  • On one hand, it not only attracts/ encourages domestic investors but also foreign investors who are reluctant to invest in a country due to a lack of infrastructural development.
  • On the other hand, income increases with rising output production which causes more saving and more capital formation implying more investment.

8. FACILITATES OUTSOURCING

Outsourcing refers to a system of hiring business services from the outside world (rest of the world) like teaching services, legal services, clinical services, call centers, etc. which depend on the development of social and economic infrastructure.

  • A country having modern and efficient infrastructure emerges/ becomes a destination for outsourcing. India is emerging as a global destination for BPO call centers, study center medical transcription, etc. owing to developed social infrastructure especially revolutionary growth in the IT sector.
  • This encourages economic growth by promoting modernization, globalization and bringing change in outlook

State of infrastructure in India – Infrastructure Class 12 Notes

  • Traditionally, the government has been solely responsible for developing the country’s infrastructure. Public/ government investment is only 5% of total GDP which is far below that of China (20% of GDPI and Indonesia (14% of GDP) and inadequate to meet the growing need for infrastructure. So, there is a need to boost infrastructure, investment.
  • Now private sector in joint partnership with the public sector has started playing a very important role in the development of infrastructure
  1. Despite so much technical progress, about 90% of the rural households are still using biofuel like crop residual dung, fuelwood to meet their energy requirements
  2. Rural people have to walk/ travel long distances to fetch fuel, water, and other basic needs
  3. In rural areas, only 56% of the households have electricity connections and the remaining 44% of households are still using kerosene.
  4. Tao water availability is limited to only 24% of total rural households and the remaining households are still using open sources of water like wells, tanks, ponds, etc.
  5. By the year 2011, 20% and 31% of people have access to improved sanitation in rural areas and the total population, respectively.

Infrastructure class 12 notes

Health

Infrastructure class 12 notes give informative texts about the health infrastructure in India.




Definition of Health

Health is a crucial component of social infrastructure. It refers to a state of complete physical, mental and social

well, being/ soundness.

  • It is not only the absence of disease but also the ability to realize one’s potential.
  • It is the holistic process related to the overall growth and development of a nation.
  • It is a yardstick of one’s well being
  • The health status of a country can be assessed through the following indicators:
  1.  Infant mortality rate
  2.  life expectancy rate
  3. death rate
  4. nutritional level
  5.  maternal mortality rate
  6.  Morbidity
  7. incidence of communicable and non-communicable diseases.
  • Health infrastructure includes hospitals, doctors, nurses, and other paramedical professionals, beds, equipment required in hospitals, and a well-developed pharmaceutical industry.
  • The development of health infrastructure ensures healthy manpower for the development of goods and services.
  •  Health improves the efficiency and productivity of a person and enables them to contribute more to economic development.
  • Government is responsible to ensure the right to healthy living. In other words, it is the responsibility of the government to ensure that health facilities are accessible to all the people three-tier tier healthcare systems in India

The government is constitutionally obliged to guide and regulate all health-related issues such as medical, education, adulteration of food, drugs, and poisons, the medical profession, vital statistics, mental deficiency, and economic development.

The union government evolves broad policies and plans through the central council of health and family welfare.

It collects information and renders financial and technical assistance to states governments, union territories, and

other bodies for the implementation of important health programs in the country.

India’s health structure and health care is made up of a three-tier system

Healthcare system of India





1. Tier-1 (Primary health care): It includes

(a) Education concerning prevailing health problems and methods of identifying, preventing, and controlling them.

(b) Promotion of food supply and proper nutrition and adequate supply of water and basic sanitation.

(c) Maternal and child health care.

(d) Immunization against major infectious diseases and injuries.

(e) Promotion of mental health and provision of drugs

To achieve the above-mentioned points or provide primary health care, primary health centers (PHC), community health centers (CHC) and sub-centers have been set up in villages and small towns. These are generally managed by a single doctor and a nurse with a limited quantity of drugs.

When the condition of a patient is not managed by such centers, they are referred to secondary or tertiary health care centers.

2. Tier-2 (secondary health care)

 It includes hospitals that have better facilities or health care facilities such as

surgery, electrocardiogram (ECG), X-ray, etc. They are mostly located in district headquarters and big towns.

3. Tier-3 (tertiary health care)

 It includes hospitals and medical centers which are equipped with advanced machines and techniques to handle emergency and complicated diseases/ health problems that could not be managed by primary and secondary health care. It includes many premier institutions which not only provide quality medical education and conduct research but provide specialized health care like All India Institute of

Medical Science, Delhi (AIIMS), Postgraduate institute, Chandigarh (PGI), National institute mental health and

NeuroScience, Bangalore (NIMHNS), etc.

Role of private sector

In recent times, the private sector has been playing a dominant role in medical education and training, medical, technology and diagnostics, manufacture and sale of pharmaceuticals, hospitals construction, and provision of medical services.

More than 70% of the hospitals and 60% of total dispensaries in India are run by the private sector.

They provide health care to 80% of out-patients and nearly 50% of in-patients.

2/3 of total beds are in the private sector.

Since 1991, many NRI and industrial and pharmaceutical companies have set up super-specialty hospitals to attract India’s rich and medical tourists.

As per world bank estimates, at the time of independence, the private sector in India accounted for only 8% of total health care facilities but today, 93% of hospitals, 64% of total beds, and 80-85% out of total doctors are related to private-sector health care facilities.

Thus, the private sector plays a crucial role in providing quality health care services.




WOMEN HEALTH

Women constitute about half of the total population of India. They suffer many disadvantages as compared to men and suffer from serious neglect in the areas of education, participation in economic activities, and health care.

  1. More than 50% of married women in India between the age group of 15 and 49 years have anemia and nutritional anemia, caused by iron deficiency. This has contributed to 19% of maternal deaths.
  2. The sex ratio declined from 945 in 1991 to 927 in 2001, by the census of 2001 due to the growing incidence of female foeticide in the country. About 3, 00000 girls below 15 years of age are not only married but have already borne at least one.
  3. Abortions are also a major cause of maternal morbidity and mortality in India.
  4. It all suggests/ points to social bias to healthcare against women in the country.

Infrastructure class 12 notes

INDIAN SYSTEM OF MEDICINE

India it’s a well developed alternate system of health care which are considered to be Indian in origin or

which have come from outside and assimilated into Indian culture.

It consists of six recognized systems of medicine. These are Ayurveda, Yoga, Unani, Siddha, Naturopathy, and Homeopathy. It is also known as AYUSH.

At present, there are 3167 hospitals, 26000 dispensaries, and 7 lakh registered practitioners in India. It has huge potential and is capable of solving major health problems because these are safe, effective, and inexpensive.

However, little effort has been made to set up a framework to standardize education or to promote research.

RURAL-URBAN DIVIDE

Health structure is significantly biased in favor of urban areas. 70% of the total population lives in rural areas but most

Modern health facilities are available and developed in urban areas.

  1. Only 20% of total hospitals are located in rural areas while 80% are in urban areas.
  2. Out of a total number of beds, only 11% of beds are available in rural areas.
  3. Only 50% of the total number of dispensaries are located in rural areas.
  4. Only 25% of the total population in rural areas has access to proper medical facilities.
  5. Public health centers (PHC) located in rural areas do not even offer X-rays or blood testing facilities.
  6. Rural people have no access to any specialized medical care like pediatrics, gynecology, anesthesia, and obstetrics.
  7. There are only 0.36 hospitals for every one lakh people in rural areas, while in urban areas one lakh people have 3.6 hospitals.
  8. There is always a shortage of doctors in rural areas even though 15,000 medical graduates are produced every year. 20% of these graduates leave the country/ migrate to other countries for better monetary prospects and many opt for private hospitals.




RICH-POOR DIVIDE

Since government hospitals do not provide sufficient services to the poor, the poor are driven/ forced to private hospitals. Health

care facilities private hospitals are expensive so that they have to sell their land or even pledge their children

to afford medical treatment and this makes them indebted forever.

The poorest 20% of Indians living in both rural and urban areas spend 12% of their income on healthcare while the rich spend only 2 %.

Thus, there is a sharp divide between rural and urban as well as rich and poor people in India.

HIGH GLOBAL BURDEN OF DISEASE (GBD) – Infrastructure Class 12 Notes

GBD is an indicator used by experts to measure the number of people dying prematurely due to a particular disease as well as several years spent by them in a state of disability owing to the disease

  1. India has about 17% of the world’s population but it bears 20% of the global burden of disease.
  2. More than half of GDB is accounted for due to communicable diseases, such as diarrhea, malaria, and tuberculosis.
  3. Every year, around 5 lakh children die of waterborne diseases.
  4. Malnutrition and inadequate supply of vaccines lead to the death of 2.2 million children every year.
  5. At present, 38% of the PHC have required several doctors and only 30% of the PHC have sufficient stock of medicine.

Medical tourism

The arrival of foreigners in India for medical treatment is known as medical tourism. Many non-resident Indians and industrialists and pharmaceutical companies have set up super-specialty hospitals to attract medical tourists.

Medical tourists come to India to avail themselves of health services that combine the latest medical technologies with qualified professionals and are cheaper as compared to the cost of similar health services in their own countries.

During 2004-05, about 1.5 lakh foreigners visited India for medical treatment and rose to 4 lakh in 2012 By 2012. India could earn more than 100 billion rupees through such medical tourism.

According to an estimate by 2020, India would be able to attract 24 lakh foreign tourists and would earn 5 billion dollars.




ROLE OF COMMUNITY AND NON-PROFIT ORGANISATION

The basic idea/ objective behind these organizations is to train people and involve them in the primary health care system. For example-SEWA in Ahmedabad and ACCORD in Nilgiris are working in India.

These have built alternative health care services for their members and to provide low-cost health care to people from nearby villages.

For example-

(1) Shahid Hospital, built-in 1983, is maintained by workers of Chhattisgarh.

(2) Mines Shramik Sangh in Durg, Madhya Pradesh.

Besides it, some rural organizations have also made attempts to build alternative health care initiatives. For example; Kashtakari Sangathan is a rural organization where women health workers are trained to treat simple illnesses at low cost.

Critical assessment of health infrastructure

Infrastructure class 12 notes provide a critical view on the state of health infrastructure.

Unequal distribution of health care services:-Distribution of health care services is extremely unequal across rural and urban sectors/ areas in India. 70% of the total population lives in rural areas but most of the modern health facilities are available and developed in urban areas.

  1. Only 20% of total hospitals are located in rural areas while 80% are in urban areas.
  2. Out of a total number of beds, only 11% of beds are available in rural areas.
  3. Only 50% of the total number of dispensaries are located in rural areas.
  4. Only 25% of the total population in rural areas has access to proper medical facilities.
  5. Public health centers (PHC) located in rural areas do not even offer X-rays or blood testing facilities.
  6. Rural people have no access to any specialized medical care such as pediatrics, gynecology, anesthesia, and obstetrics.
  7. There are only 0.36 hospitals for every one lakh people in rural areas while in urban areas one lakh people have 3.6 hospitals.

Spread of non-communicable diseases  Communicable diseases like AIDS, HIV (human immunodeficiency virus), and SARS (severe acute respiratory syndrome) are raising and posing a serious threat to society.

Poor upkeep and maintenance (poor management) of public health care services Upkeep and maintenance (poor management) of public health care services is very poor.

(A) The quality of health care services in public hospitals is poor compared to private health care services.

(B)At present. 38% of the PHC have a required number of doctors and only 30% of the PHC have sufficient stock of medicine.

(C)There is a substantial mismatch between the personnel required and the number of health care centers.

That is why people are often too compelled to depend on private treatment.

Privatization; After the implementation of new economic policy government is gradually moving towards privatization of health care services Private sector health care services have been growing by leap and bounds and have been taking place of government sector health care services

More than 70% of the hospitals and 60% of total dispensaries in India are run by the private sector.

They provide health care to 80% of our patients and nearly 50% of patients.

2/3 of total beds are in the private sector.

But the health care services provided by the private sector are very expensive which is beyond the reach of the major part of the Indian population or not affordable.

Poor sanitation facilities: The sanitation level is extremely poor in both the rural and urban areas in India.

(A)About 30% of the houses in urban areas do not have toilet facilities whereas only 6% of total houses have toilet facilities in rural areas.

(B)By the year 2011, 20% and 31% of people have access to improved sanitation in rural areas, and the total population

respectively.





(c) Slums dwellers in urban areas live in a pathetic polluted atmosphere.

(d) Tap water availability is limited to only 24% of total rural households and the remaining households are still using open sources of water like well, tanks, ponds, etc.

High GBD; GBD is an indicator used by experts to measure the number of people dying prematurely due to a particular disease as well as several years spent by them in a state of disability owing to the disease.

  1.  India has about 17% of the world’s population but it bears 20% of the global burden of disease.
  2. More than half of GDB is accounted for due to communicable diseases, such as diarrhea, malaria, and tuberculosis.
  3. Every year, around 5 lakh children die of waterborne diseases.
  4. Malnutrition and inadequate supply of vaccines lead to the death of 2.2 million children every year.

Poor women’s health: Women constitute about half of the total population of India. They suffer many disadvantages as compared to men and suffer from serious neglect in the areas of education, participation in economic activities, and health care.

  1. More than 50% of married women in India between the age group of 15 and 49 years have anemia and nutritional anemia, caused by iron deficiency. This has contributed to 19% of maternal deaths.
  2. The sex ratio declined from 945 in 1991 to 927 in 2001, by the census of 2001 due to the growing incidence of female foeticide in the country.
  3. About 3, 00000 girls below 15 years of age are not only married but have already borne at least one.
  4. Abortions are also a major cause of maternal morbidity and mortality in India.

It all suggests/points to social bias to healthcare against women in the country.

Infrastructure class 12 notes bring to you all the necessary information including the definition, types, the importance of infrastructure. These notes also talk about the state of Indian infrastructure especially health infrastructure and the need for improvement in the same.




CBSE Class 12 Economics Notes Term II Syllabus

Part A: Introductory Macroeconomics

Part B: Indian Economic Development

Current challenges facing Indian Economy – 12 Marks

Development Experience of India – A Comparison with Neighbours – 6 Marks