Anyone even remotely acquainted with the Indian economy would speak volumes about its almost phenomenal transition to a high growth path since the launch of the liberalization process in the early 1990s. But as the economy successively graduated from one growth track to a higher one, there came with it a growing realization that without the expansion of infrastructural facilities, the risks of overheating and inflation in the economy were just too high.
Across levels of policymaking and industry, a commonly acknowledged fact was that the existing infrastructure in the country was simply not adequate to achieve or sustain the target growth rates. That acknowledgement came through officially from the government when in the preface to the Eleventh Five Year Plan, it stated: "Poor quality of infrastructure seriously limits India's growth potential in the medium term and the Eleventh Plan outlines a comprehensive strategy for development of both rural and urban infrastructure. The total investment in these areas was around 5 percent of GDP in 2006-07 and the Plan aims at increasing this to about 9 percent of GDP by the terminal annum 2011-12."
Across levels of policymaking and industry, a commonly acknowledged fact was that the existing infrastructure in the country was simply not adequate to achieve or sustain the target growth rates. That acknowledgement came through officially from the government when in the preface to the Eleventh Five Year Plan, it stated: "Poor quality of infrastructure seriously limits India's growth potential in the medium term and the Eleventh Plan outlines a comprehensive strategy for development of both rural and urban infrastructure. The total investment in these areas was around 5 percent of GDP in 2006-07 and the Plan aims at increasing this to about 9 percent of GDP by the terminal annum 2011-12."
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India's GDP in the first quarter of 2010 is 9%. An astonishing feat given the recession scenario!
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