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Integrating the issue of infrastructural investment with economic growth: The case of India

Author

Listed:
  • Mukul GUPTA

    (Birla Institute of Technology and Science, Pilani, Rajasthan, India)

  • Rahul BUDHADEV

    (Birla Institute of Technology and Science, Pilani, Rajasthan, India)

  • Varun CHOTIA

    (Birla Institute of Technology and Science, Pilani, Rajasthan, India)

  • N V Muralidhar RAO

    (Birla Institute of Technology and Science, Pilani, Rajasthan, India)

Abstract

The development of a country’s infrastructure is instrumental in accelerating its economic growth. The inadequacy in the infrastructure provisions hinders population to promote self reliance in economic sectors, thereby proving to be a hindering factor to economic growth. Through this paper, we have aimed to investigate the relationship between investment in key infrastructure sectors and economic growth, in order to see how these sectors impact India’s economic growth and how significant this impact is. Further, a detailed qualitative analysis of all the infrastructure sectors involved in our study has been done with a focus on explaining the reasons behind significance/ insignificance of a particular sector. In the final part of analysis, a budget allocation model has been formulated with the help of linear programming technique. This model gives us a fresh viewpoint of the prospective inclination of government budget, and its extent of allocation to the diversity of infrastructure sectors.

Suggested Citation

  • Mukul GUPTA & Rahul BUDHADEV & Varun CHOTIA & N V Muralidhar RAO, 2016. "Integrating the issue of infrastructural investment with economic growth: The case of India," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(608), A), pages 141-162, Autumn.
  • Handle: RePEc:agr:journl:v:xxiii:y:2016:i:3(608):p:141-162
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    References listed on IDEAS

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