Infrastructure Sector Growth Rate in India GDP has been on the rise in the last few years. The Growth Rate of the Infrastructure Sector in India GDP has grown due to several reasons and this in its turn has given a major boost to the country's economy.
Economy of India
India gross domestic product (GDP) means the total value of all the services and goods that are manufactured within the borders of the country within the specified period of time.
The Indian economy is the twelfth biggest in the whole world for it has the GDP of US$ 1.09 trillion in 2007. The economy of India is the second major growing economy in the whole world for it has the GDP growing at the rate of 9.4% in 2006- 2007.
The Infrastructure Sector in India
The Infrastructure Sector in India was after independence completely in the hands of the public sector and this hampered the growth of this sector. India's less spending on real estate, power, telecommunications, construction, and transportation prevented the country from sustaining very high rates of growth. The amount that India was spending on the Infrastructure Sector was 6% of GDP or US$ 31 billion in 2002.
The contribution of the Infrastructure Sector in the India GDP
Infrastructure Sector Growth Rate in India GDP came to 3.5% in 1996- 1997 and the next year, this figure was 4.6%. The Growth Rate of the Infrastructure Sector in India GDP increased after the Indian government opened the sector to 100% foreign direct investment (FDI). This was done in order to boost the Infrastructure Sector in the country. The result of opening the sector to the private sector has been that Infrastructure Sector Growth Rate in India GDP has increased at the rate of 9%. It is estimated that the Growth Rate of the Infrastructure Sector in India GDP will grow at the rate of 8.5% between 2006 and 2010. The biggest ongoing project in the Infrastructure Sector in India is the Golden Quadrilateral, which is improving the main roads that connect the four cities of Chennai, Mumbai, Delhi, and Kolkata.
The Government of India must boost the Infrastructure Sector
Infrastructure Sector Growth Rate in India GDP thus has increased over the last few years due to the efforts that have been made by the Indian government. The government of India must continue to take steps to improve the Infrastructure Sector in the country. For this in its turn will help to boost the Indian economy in future.