Discuss how infrastructure bottlenecks hinder the growth of the Indian Manufacturing sector. What steps can be taken to address them?
In short
Infrastructure bottlenecks hurt Indian manufacturing through logistics costs of 13-14% of GDP, unreliable power, land and regulatory delays, and poor last-mile connectivity. Remedies include coordinated state infrastructure authorities, simpler land and permit rules, more rail freight and renewable energy, and plug-and-play parks like PM MITRA.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 296 words
Fragmented Governance and Project Delays
Multiple agencies cause delays, exemplified by the Polavaram Project2 with only 11% PDFs rehabilitated after 17 years, reflecting poor coordination and land acquisition hurdles. This fragmentation leads to inefficient resource use and stalled industrial infrastructure development.
Transport and Energy Bottlenecks
Over-reliance on road freight inflates logistics costs (~13-14% GDP), while unreliable power and low per capita energy use limit manufacturing productivity. Underdeveloped rail freight and costly energy supply increase production costs and reduce export competitiveness.
Industrial Infrastructure Gaps
MSMEs face infrastructure shortages despite schemes like PM MITRA3 parks and Biopharma SHAKTI; slow policy execution and underutilized funds stall growth. Lack of plug-and-play facilities and renewable energy options restrict MSMEs from scaling and integrating into global value chains.
Institutional Reforms and Infrastructure Investment
Unified state-level authorities (e.g., in Andhra Pradesh4), streamlined land laws, expanded rail freight, renewable energy projects, and scaling PM MITRA parks can enhance manufacturing competitiveness. Promoting last-mile connectivity and improving urban utilities will further boost industrial productivity.
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