Thursday, June 26, 2008

Infrastructure deficit can derail India's growth: Rangarajan

Sluggish infrastructure development could derail India's growth rate and pose serious challenges to development, says C. Rangarajan, chairman of the Prime Minister's Economic Advisory Council. The main points which he made are:
  1. "If we are to sustain the present growth rate and accelerate it to higher levels, we have to not only invest heavily in infrastructure projects through public-private partnerships but also ensure their timely execution."
  2. "Efficient and speedy implementation of projects is critical in the infrastructure area.".
  3. Yet, time and cost overruns, poor execution and bureaucratic hurdles have put a severe pressure on existing infrastructure, especially in urban areas. "As a result, our infrastructure facilities and urban amenities are groaning as they are stretched out," Rangarajan said.
  4. "We need to invest equally in social infrastructure. The spending in health and education should be efficient as they are a function determining the quality of expenditure than quantum.
  5. "The way out is to modernise and diversify the farm sector by improving the forward and backward linkages,"
This is what Rangarajan said. Here is another effort by the government to develop infrastructure by means of developing Inland waterways for transporting goods in wake of the rising fuel prices.

I had pointed earlier here a similar news item wherein they talked about putting the inland waterways in the forefront. Lets see when will it happen.