Class 12 Economics - Ch 8 Infrastructure Indian Economy Development

 

Infrastructure 

Infrastructure -  is referred as the support system of socio - economic development of a country.

Economic Infrastructure: consist of elements that are essential for production activity like power, transport, communication.

Social Infrastructure: Refers to elements of support system that are essential for social development or the development of the society.

INFRASTRUCTURE AND DEVELOPMENT

Infrastructure contributes to the process of growth and development by:

1. Promoting productivity in all three sectors - In primary sector the permanent means of irrigation would lead to the uncertainty in the farming activity. In secondary sector without infrastructure the industrial production would simply depend upon wind and solar energy and in tertiary sector without the means of transport and communication the service sector would not operate.

2. Inducing Investment - Infrastructure is the backbone of investment as it promotes  investment in different sectors of the economy consecutively.

3. Generating Linkages in Production and Enhancing size of market - Linkages means when the expansion of one industry facilitates the expansion of another. Infrastructure allows this to happen through developed means of  transport, communication etc. It also enhances the size of market.

4. Facilitating Outsourcing - Outsourcing includes both foreign and domestic contracting Good infrastructure means  the country becomes an emerging destination of outsourcing.

5. Inducing FDI - Foreign Direct Investment works efficiently in less developed countries where domestic investment is low.

Energy and Health - key components of economical & social infrastructure.

COMMERCIAL AND NON - COMMERCIAL USE OF  ENERGY:

Coal, petroleum , natural gas are the goods that are used largely for industrial purposes and  in factories.

Animal waste, agricultural waste are mostly used in rural households as consumer goods for domestic purposes. 

CONVENTIONAL AND NON - CONVENTIONAL SOURCES OF ENERGY

Conventional are those that have a history of their knowledge and use like natural gas.

Non - Conventional that have been discovered recently and haven’t gained much popularity like biomass.

Conventional Sources: Not Environment - friendly

  1. Coal - India is rich in coal production, its main consumers are Thermal power stations, railways, steel  plants etc. Good quality coal for India is imported to other countries.
  2. Petroleum - India has a surplus demand of petroleum but its production is not surplus so even this has to be imported owing to a gap between domestic production and domestic consumption.
  3. Natural Gas -  used as a raw material in fertiliser and as LPG.
  4. Electricity -  Three sources of electricity in India Thermal, Hydro - electricity and Atomic Power stations. There has been shift from hydro to thermal  because India has large reserves of coal hydroelectric stations installation requires huge investment and time.

Non - Conventional Sources:  Environment Friendly. Solar energy, wind energy, geothermal energy, energy through tides and waves etc.

EMERGING CHALLENGES IN POWER GENERATION

  1. Inadequate Generation of Electricity:

Due to excess demand over supply  the problems of excessive load on distribution, power cuts cuts etc have arise. It is therefore essential to meet the rising demand with increased supply.

2. Less Capacity Utilisation:

Under - utilisation of production capacity in India. Capacity utilisation is indicated by Plant Load Factor.

3. Transmission and Distribution ( T & D) Losses:

Owing to increasing T & D losses most states go for privatisation of distribution network.

4. Losses of Electricity Boards:

In India production and distribution of electricity is under direct control of government and it is distributed by State Electricity Boards (SEBs). Due to lack of funds electricity boards are running into losses.

COPING WITH CHALLENGE OF POWER GENERATION

  1. Increase Production Capacity: It is required to increase the production capacity to increase the supply of electricity in all the sectors equally.
  2. Minimise the Transmission and Distribution Losses: To improve the real availability of electricity huge investment on maintainace and upgradation of existing pants is required and only then the losses can be minimised or avoided.
  3. Improve Supply Inputs to Power Plants: Regular supply of coal is required in India by the thermal power plants Doing this will facilitate fuller utilisation of existing plant capacity.
  4. Encouraging Privatisation and FDI in Power Generation: Government should encourage the FDI in infrastructure to ensure that the growth benefits are beneficial in longer terms as well.

HEALTH

Good health ensures that there’s increased efficiency to handle tough tasks, productivity of labour increases along with the mental abilities.

1.) Decline in Death Rate: from 27 per thousand in 1951 to 6.4 per thousand in 2016.

2) Reduction in Infant Mortality Rate: Has reduced from 146 per thousand  in 1951 to 34 per thousand in 2016.

3) Rise in Life Expectancy: Risen from 32 years in 1951 to 68.3 years in 2016.

4) Control over Deadly Diseases and Decline in Under- five Mortality Rate: Tuberculosis, Cholera, Smallpox have been under control and the under - five mortality rate declined from 248 per thousand in 1960 to 245 per thousand in 2014.

Many hospitals and dispensaries along with doctors have increased significantly and the healthcare facilities have been expanding.

HEALTHCARE SYSTEM IN INDIA:

In India there is three - tier healthcare system where -

Tier - 1 includes Primary Health Centres, Community Health Centres and Sub - centres that are set up in mostly small towns and rural areas and managed by a single doctor and Auxiliary Midwife. They emphasise on educating people regarding healthcare issues and preliminary treatment is offered to patients within manageable limits,.

Tier - 2  has Secondary Healthcare Institutions that have been upgraded for facilities like ECG and X-rays, mostly located in big towns and districts

Tier - 3 includes Tertiary Healthcare Centres that offer specialised medical facilities and also include educational and research centres like AIIMS, PGI etc.

PRIVATE SECTOR HEALTH INFRASTRUCTURE:

In India more than 80 per cent of total healthcare spending is accounted by private sector.

Private sector in healthcare has gained great dominance in all sub markets - medical education and training , manufacture and sale of pharmaceuticals etc.

HEALTH AS AN EMERGING CHALLENGE:

  1. Unequal Distribution of Healthcare services - across rural and urban areas.
  2. Poor Management and Poor Upkeep and maintenance - Health personnel are inadequate in rural areas and therefore they have to go to urban healthcare centres or be treated in rural areas by unauthorised doctors. Government healthcare centres are very poor the quality difference can be observed in private and public hospitals therefore people have to shift to the private ones despite them being unaffordable.
  3. Privatisation: Due to the private ownerships encouraged by the government the healthcare services are becoming expensive and unaccessible along with  being unaffordable  to many.
  4. Poor Sanitation Level: There is poor sanitation level in urban and rural areas meaning that the surroundings aren’t clean and people are still unaware about the proper sanitation system that come under sanitation infrastructure.

INDIAN SYSTEMS OF MEDICINE - systems of medicine that are considered to be of Indian origin or got settled into Indian culture. For example - Ayurveda, Yoga, Homeopathy etc.

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