2021 · GS Paper 3 · Q12 · 15 marks
"Investment in infrastructure is essential for more rapid and inclusive economic growth." Discuss in the light of India's experience.
In short
India's experience shows that infrastructure investment raises growth through a 2.5 to 3.5 times multiplier and widens inclusion through rural roads, power and water, provided projects are well chosen and financed. Jal Jeevan Mission tap connections rose from 3.23 crore in 2019 to over 15 crore by 2025.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 278 words
Multiplier effect
The Economic Survey 2025-26 puts the multiplier of public infrastructure spending at 2.5 to 3.5 times over the medium term.
Connecting markets
Districts near the Golden Quadrilateral saw faster growth of organised manufacturing (Ghani, Goswami and Kerr, 2016).
Lower logistics costs
Freight corridors, PM GatiShakti and the 2022 logistics policy helped India reach 38th in the 2023 Logistics Performance Index.
Rural access
PMGSY roads helped rural workers move into non-farm jobs (Asher and Novosad, 2020), though household consumption and earnings changed little.
Basic services
Saubhagya electrified about 2.86 crore households, and Jal Jeevan Mission tap connections rose from 3.23 crore in 2019 to over 15 crore by 2025.
Limits
Stalled PPP projects of the 2010s fed bank NPAs, and the CAG's 2023 audit found many UDAN routes closed once subsidy ended, while land disputes stalled projects and led to the RFCTLARR Act 2013.
Quality and financing
Fund maintenance, use GatiShakti data to pick projects, and deepen InvITs and municipal bonds.
Inclusion and resilience
Pair hard assets with schools, clinics and skills, and build climate-proof assets.
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Infrastructure (etc.)4 questions
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Question from the official UPSC Civil Services (Main) Examination 2021 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.