The development of infrastructure is a
prerequisite for industrialisation in any
country. In the pre-Independence
period, basic infrastructure was not
developed and therefore, industrialisation
progressed at a very slow pace. The
process of industrialisation cannot
be sustained without adequate
transportation and communication
facilities, fuel and energy, and basic and
heavy industries. The private sector did
not show any initiative to invest in heavy
industries or develop it in any manner.
They did not have trained personnel or
finances to immediately establish heavy
industries which was the requirement
of the economy.
It was only the government which
could mobilise huge capital, coordinate
industrial construction and train
technicians and workforce. Rail, road,
sea and air transport was the
responsibility of the government, and
their expansion has contributed to the
pace of industrialisation and ensured
future economic growth. The public
sector enterprises were to operate in
certain spheres. Investments were to be
made to:
(a) Give infrastructure to the core
sector, which requires huge capital
investment, complex and upgraded
technology, big and effective
organisation structures like steel
plants, power generation plants,
civil aviation, railways, petroleum,
state trading, coal, etc;
(b) Give a lead in investment to the core
sector where private sector
enterprises are not functioning in
the desired direction, like fertilizers,
pharmaceuticals, petro-chemicals,
newsprint, medium and heavy
engineering;
(c) Give direction to future investments
like hotels, project management,
consultancies, textiles, auto-
mobiles, etc.