Investment in infrastructure
The Eleventh Plan (2007-08 to 2011-12) aims at a sustainable growth rate of 9 percent with emphasis on a broad-based and inclusive approach that would improve the quality of life and reduce disparities across regions and communities. There is consensus that infrastructure inadequacies would constitute a significant constraint in realizing this development potential. To overcome this constraint, an ambitious programme of infrastructure investment, involving both public and private sector, is being developed for the Eleventh Plan. The programme ensures strengthening and consolidation of recent infrastructure related initiatives, such as the Bharat Nirman for building rural infrastructure, as well as sectoral initiatives, such as the National Highways Development Programme (NHDP), the Airport Financing Plan, and the National Maritime Development Programme and the Jawaharlal Nehru National Urban Renewal
Mission (JNNURM).
Projections of investment in infrastructure have been made in two ways. First, rough top-down (‘order-of-magnitude’) estimates of investment have been derived from the Government’s GDP growth targets and estimates of the likely evolution of the share of Gross Capital Formation (GCF) in infrastructure as a proportion of Gross Domestic Product (GDP) consistent with those targets. Second, a bottom-up exercise has been undertaken based on a detailed analysis of past trends in combination with strategic and financing plans in the pipeline for various infrastructure sectors.
Projection of GCF based on Growth Targets
India’s GDP is projected to grow annually at an average rate of 9 per cent over the Plan period. Based on investment levels in infrastructure in several cross-country analyses of fast growing Asian economies, GCF in infrastructure may need to be accelerated to around 11 per cent by the terminal year of the Eleventh Plan to achieve the targeted annual growth in GDP of 9 per cent. Realistically, however, starting from a level of less than 5 per cent of GDP observed in 2004-05, such a rapid change in the structure of investments may not be feasible. Moreover, it may not be a necessary condition for achieving a 9 per cent growth since many East Asian countries may have invested more than is essential and while about 10 per cent investment is desirable, India could try to achieve it over a longer period. Taking these factors into account, a top-down target of GCF in infrastructure of around 9 per cent of GDP by the end of the Eleventh Plan seems reasonable. It is assumed that total GCF in infrastructure as a share of GDP increases from 5.
When construction takes place, it is usually way before it is actually needed. Of course it is helping prevent dangerous and fatal occurrences but for the most part some of these changes can wait. Instead of spending so much money on our transportation category we should be putting more into education. “The money that the Federal Budget gives for education covers college aid loans, special education programs, free lunch to students in need, anti-discrimination efforts, research, and special programs” (Document D). Education is one of the most important things a person can have. ”
The construction industry plays an important role in competitiveness and prosperity of the economy in terms of its significantly contributing to shelter, infrastructure and employment (Anaman and Osei-Amponsah, 2007). A number of researchers have investigated on the vital role of the construction sector to the overall economic growth. In Rhodes’ paper who stated the construction industry in the UK contributed £83.0 billion in economic output in 2012, which accounts for 6% of the total. Also, workforce jobs in the construction industry in UK were 2.03 million in 2012 and 2.12 million in 2013, account 6.4% and 6.5% in total respectively (C. Rhodes, 2013). Oladinrin indicated the significance of construction linkage with the aggregate economy in Nigeria by studying on construction output and Gross Domestic Project (Oladinrin and etc., 2012). A recent report of U.S. Bureau of Economic Analysis showed that the GDP value added of construction industry was $652,723 million in 2014, 3.7% of total GDP (http://www.bea.gov/industry/gdpbyind_data.htm). Besides, a report of U.S. Bureau of Labor Statistics stated the employment by construction industry sector take 4.7%, 3.9% and 4.5% in the year of 2002, 2012 and 2022 respectively (http://www.bls.gov/emp/ep_table_201.htm). The construction industry has been playing an influential role on domestic GDP in China (Zhou and Liu, 2007). A report of National Bureau of Statistics of China
Infrastructure is a key part of modern life; we use it every day without thinking about it, and because of this, it goes neglected. Most people only think about the road that they are driving on when they hit a pothole; infrastructure is invisible, until it breaks. The fact that infrastructure is largely invisible means it gets neglected and abused, it is not an issue most people think about, politicians do not win by talking about it, and any solution in the near term generally requires raising taxes, making the subject more unpopular for the citizenship at large. The longer we ignore our infrastructure problems, the more it will cost to fix, and the more likely it is for a disaster to happen.
According to the World Economic Forum, a group of the top 1,000 businesses in the world and a leading source of world economic data, as well as economic theory, the United States ranks twelfth out of one hundred forty-four nations in infrastructure with a score of 5.8 out of 7 (Global Competitiveness). This shows that while the United States may not have a perfect infrastructure system, it still does very well when compared with other countries. In the first sub category of transport infrastructure the United States performs even better, placing ninth in the world with a score of 5.8 out of 7. This success mostly stems from our airport infrastructure. The United States ranks ninth in Quality of air transport infrastructure, with a score of 6.1 out of 7. In the category of available airline seat kilometers or how many seats per distance traveled by aircraft, America rank first in the world. The United States performs decently in the quality of roads, earning Sixteenth in the world, fifteenth in railroad infrastructure, and twelfth in port infrastructure. However, in the second category of electricity and telephony infrastructure the United States ranks twenty sixth with a score, again, of 5.8 (Global Competitiveness). This ranking largely stems from the United States’s ranking one hundred
It is quite obvious that Japan’s government needs to invest in social capital,and thus they need to review their budget allocated for investment; that they need to make it their priority until the country is recovered to get ‘back on track’. With investment in repair of roads and all other transport systems, investment in power supply and renovation of buildings, Japan will be able to compensate for the loss of revenue from exports they have made during the crisis.
The root cause of the spread is identified as the average cost of development and municipal services. Like low density zoning development, water and sewer connections, or even seemingly ordinary service of average cost pricing makes lower costs in cheap construction. If there is no adjustment to meet the current more nervous and compact city planning objectives, the precious growth management tools would be wasted, and they missed the opportunity to reduce infrastructure costs in the future. In order to stimulate a more compact urban growth model, development costs can be adjusted according to exchange rates or time. In the reform development cost structure, the municipal authorities can make efforts to increase their income by raising the integral development cost income or revenue neutrality by reducing or remitting development costs, and loss of any income was offset by higher development costs of higher income. However, to prevent future fiscal shortfalls and avoid market distortions, development costs should not be lower than the level required to pay for infrastructure
...itionally, the government as part of the rebuilding efforts that have been taking place should invest in infrastructure, speeding up implementation of plans for a regional airport, highways, and harbors that would offer much needed benefits to fishermen working along the southern coast Arunatilake, et al., 2014, p. 29).
There are several limitations in aviation infrastructure in India for instance parking bays, gates to board passengers, landing slots etc are in short supply. This often leads to massive delays, cancellation and major losses in revenue for many LCCs. For upgraded infrastructure facilities, India’s civil aviation minister Praful Patel said on 15 February 2006 that Indian government defer decision on privatization of International Airport in Delhi and Mumbai. The government aims to set up joint venture to operate these airports and offered 74 per cent stakes. Foreign direct investment (FDI) can hold up to 49 per cent in this transaction, while 25 per cent must be held by private Indian companies. Remaining 26 per cent to be held by Airport Authority of India (AAI) and other government PSUs.
The fourth largest sector in the Indian economy is all set for 16% growth during 2008-09, from a base of Rs. 85470 crores, as predicted by FICCI. Going forward, as anticipated by CRISIL, FMCG sector will touch around Rs. 140000 crores by 2015 (33.4B$).
The People’s Republic of China has been one of the key growers of the global middle class throughout the past decades. It houses a middle class population of approximately 300 million people. A massive shift is occurring to increase marketing and increasing urban middle class populations in China. Millions of people are being encouraged to move to the cities which will springboard economic growth through domestic consumption. In addition to urbanization and consumption, the PRC is investing in programs designed to boost infrastructure, healthcare and education. This includes new transportation technology, designed to make domes...
India's strategy for development has had many critics. It was pointed out that the emphasis on heavy industry
The eight billion initial investments in the high-speed rail are expected to produce about 320,000 jobs and roughly thirteen billion dollars in economic benefit. These include construction and operation jobs, as well as manufacturing and supply chain options. By increasing mobility while decreasing crowding and spreading, high-speed rail makes our country more competitive while simultaneously creating economic development. The High Speed Rail could boost the economy and could provide alternate transportation, therefore it should be built.
Ardnt, Channing, Paul Chinowsky, Kenneth Strzepek, and James Thurlow. "Climate Change, Growth and Infrastructure Investment: The Case of Mozambique. ." Review of Development Economics (n.d.): n. pag. Print.
Out of Japan, China, and India, India has arguably faced the most challenges out of all three on its road to modernization. It is hard to assess the weight of the challenges each country faced due to the different nature of each one of them albeit similarities between some of them. India comes out with the slightly more difficult past as there is still today a struggling effort to modernize as well as from the past. The challenges of the past that were instrumental in shaping India to what it is today. If one was to compare all three and hand the runner up trophy for most challenges faced it would be China. While not to discount the struggles of the Japanese, their history is not brimmed with as many social struggles that and external influences
Infrastructure Management and Construction deals with project management, construction materials, construction engineering and building engineering.