Infrastructure Shortages
India’s biggest challenge is its shortage in infrastructure. These shortages have resulted in a skewed pattern of growth that is not sustainable. India’s infrastructure deficit has been an ongoing struggle as the government has been trying to catch up for years. However, India’s economy has grown to a size that will make it very difficult for both new businesses to enter the market and existing business to expand. Recent studies have shown that India is suffering a shortfall of $190 billion in the infrastructure sector and is in urgent need of capital. India’s roads are often unsuitable for large vehicles and they literally form blockades for progress. The railways and roads dominate the country’s transport landscape. Road transport services in India are generally poor and logistics costs are high. Infrastructure shortages have particularly hindered the growth of export oriented manufacturing and value-added agriculture that integrate into global supply chains. India needs sustainable roads, ports, airports, and railways as well as reliable power and water to prosper.
Link(s):
http://www.policymic.com/articles/16089/india-economic-growth-once-a-shining-economy-india-is-in-danger-of-running-out-of-gas
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/EXTSARREGTOPMACECOGRO/0,,contentMDK:20592
481~menuPK:579404~pagePK:34004173~piPK:34003707~theSitePK:579398,00.html