Interlinkages between Infrastructure and Developmental Outcomes

During the last decade India is one of the fastest growing economies in the world but still the growth trajectory of Indian economy is not inclusive at all and India ranks a pitiful 131 out of 187 countries on human development index. One of the key determinants of growth and development is infrastructure and India lag behind other emerging countries in terms of infrastructure development. So, to maintain the impressive growth rate along with the aim of fostering a sustainable and inclusive development huge investment in all infrastructure sectors is required. This study investigates the role of infrastructure in economic development especially in achieving Millennium Development Goals (MDG's) across Indian states for the two periods 2005 and 2015. A composite Infrastructure Index is prepared for the 27 states during the time period which reveals that infrastructure is positively affecting MDG outcomes. Further, the impact of infrastructure on achieving health and educational outcomes is also illustrated in this paper. This study finds the crucial role of infrastructure in reducing mortality rates across the states. However, in the case of elementary education, qualified, experienced, and competent teacher is a prerequisite for any development.