Write a short note on infrastructure bottlenecks and regional imbalances as problems of Indian industry.

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Infrastructure bottlenecks and regional imbalances are two long-standing structural problems of Indian industry that are closely connected. Infrastructure bottlenecks refer to inadequate and unreliable power supply, congested and poorly maintained transport networks (roads, rail freight movement, ports), and slow logistics, all of which raise the effective cost of manufacturing in India relative to competing economies and can cause frequent production delays. Regional imbalances refer to the tendency of industrial investment to concentrate in states and clusters that are already relatively industrialised — where infrastructure, skilled labour and ancillary industry already exist — leaving many other regions of the country industrially underdeveloped even decades after independence. These two problems reinforce one another: regions that lag in infrastructure tend to attract even less new industrial investment, which in turn gives them less reason to receive further infrastructure investment, perpetuating regional disparity. Correcting regional imbalance in industrial location was an explicit objective of the 1956 Industrial Policy Resolution and of subsequent planning, through measures such as backward-area incentives and public-sector plant location decisions, and it remains a live policy concern today, addressed pa …

Q.Write a short note on infrastructure bottlenecks and regional imbalances as problems of Indian industry.

Concept understanding — Problems of Indian Industry and Industrial Finance

Q.Write a short note on infrastructure bottlenecks and regional imbalances as problems of Indian industry.

Concept understanding — Problems of Indian Industry and Industrial Finance

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