INFRASTRUCTURE CHALLENGES IN INDIA: THE ROLE AND ISSUES OF PUBLIC-PRIVATE PARTNERSHIPS

Infrastructure is the prerequisite for the development of any economy. Roads, telecommunications,
energy, water, health, housing, and educational facilities have become part and parcel of human existence. It is
difficult to imagine a modern world without these facilities. These are vital to the household life as well as to the
economic activity. Infrastructure plays a crucial role in promoting economic growth and thereby contributes to
the reduction of economic disparity, poverty and deprivations in a country. Greater access of the poor to
education and health services, water and sanitation, road network and electricity is needed to bring equitable
development and social empowerment. It is an important pre-condition for sustainable economic and social
development. Infrastructural investments in transport (roads, railways, ports and civil aviation), power,
irrigation, watersheds, hydroelectric works, scientific research and training, markets and warehousing,
communications and informatics, education, health and family welfare play a strategic but indirect role in the
development process, but makes a significant contribution towards growth by increasing the factor productivity
of land, labour and capital in the production process, especially safe drinking water and sanitation, basic
educational facilities strongly influence to the quality of life of the people. This study establishes the relationship
between infrastructure and economic growth using growth theories by empirical evidences. Finally it concludes
infrastructure and poverty reduction in the Indian context.