Demographic Profile of India

Role of Infrastructure for Success of Make in India Programme: An Empirical Analysis

Vimarsh Padha* Pabitra Kumar Jena** & Kakali Majumdar***

Abstract

Make in India is the instigation to make the country globally enriched in the multidimensional direction. Inadequate infrastructure is one of the main obstacles in its way. Even if, infrastructure is priority for the government’s economic policy and Indian Government is taking every possible initiative to boost the various dimension of this sector, a lot more progress and advancement is still needed to meet the infrastructural deficiency of the country. With this background, the present study aims at analysing the importance of infrastructure sector and its role for success of the objective of Make in India. Some of the issues and challenges faced by the Indian infrastructure sector that pose constrains in fostering economic growth are addressed in the study. The empirical evidence of the present work shows that the cause and effect relationship between infrastructure and economic growth truly exists for the country. The relationship is positively significant and equally relevant for short as well as in the long run. For the above empirical findings this study had used Granger causality, Co-integration Technique and Error Correction Mechanism( ECM). Based on the findings and literature evidence this study also tries to prescribe some policy framework that may be taken into consideration in Make in India programme when it comes to the infrastructural sector.

Keywords: Infrastructure, Economic Growth Make in India Programme

JEL Classification: H53, O18 & O40

*M. Sc. Integrated Economics Student, Shri Mata Vaishno Devi University, Katra, Jammu & Kashmir

** Assistant Professor, School of Economics, Shri Mata Vaishno Devi University, Katra, Jammu & Kashmir

*** Director, School of Economics, Shri Mata Vaishno Devi University, Katra, Jammu & Kashmir

1. Introduction

Globalization, population growth and...