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Describe Development of Infrastructure.

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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


(c) Give direction to future investments

like hotels, project management,

consultancies, textiles, auto-

mobiles, etc.