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Questions
How do infrastructure facilities boost production?
'Infrastructure facilities boost production.' Do you agree? Explain.
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Solution
Infrastructure-social and economic, facilitates production. The role of infrastructure in economic production can be understood with the help of an example. If agriculture is devoid of irrigation facilities, then it would entirely depend on the monsoon that may hamper its production and productivity. As irrigation is essential to enhance productivity of agricultural sector, in the same manner, infrastructure is essential for smooth and efficient production of all sectors of the economy. Similarly, industrial production in the absence of proper means of transportation may lead to delays in the movement of raw materials, capital goods and finished goods. This,in turn, leads to delays in the production process and, thereby, hampers industrial production. Thus, infrastructure is the necessary condition for higher productivity and higher production.
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