Analysis of Infrastructure Building Policies in India: Meeting SDG 9

Copyright © 2019 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/ by/4.0) Introduction This paper focuses on Indian economy in the light of sustainable development goal number 9. Indian economy is a developing mixed economy. It is world’s sixth largest economy in terms of nominal GDP and third largest economy by GDP (PPP) 181 countries as per International Monetary Fund. The Indian economy is projected to grow at an annual rate of 7.4% in 2018 and 7.8% in 2019, according to a recently released IMF Economic Outlook. Forbes cites that, India’s economy is lifted by strong private consumption, waning transitory effects of demonetisation and implementation of the national goods and services tax. Over time, growth is expected to gradually rise with continued implementation of structural reforms that increase productivity and incentivize private investment.


Introduction
This paper focuses on Indian economy in the light of sustainable development goal number 9. Indian economy is a developing mixed economy. It is world's sixth largest economy in terms of nominal GDP and third largest economy by GDP (PPP) 181 countries as per International Monetary Fund. The Indian economy is projected to grow at an annual rate of 7.4% in 2018 and 7.8% in 2019, according to a recently released IMF Economic Outlook. Forbes cites that, India's economy is lifted by strong private consumption, waning transitory effects of demonetisation and implementation of the national goods and services tax. Over time, growth is expected to gradually rise with continued implementation of structural reforms that increase productivity and incentivize private investment.
In 2015, the General Assembly embraced Sustainable Development as its agenda. 17 Sustainable Development Goals (SDGs) were framed to be achieved till 2030. It is buit on the premise that no one is left behind. It ensures development for all. Amongst these 17 goals is-Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. This goal targets to develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure. It also aims to support economic development and human well-being, with an edge on affordable and equitable access for all.
Following the footsteps of UN, India has taken certain initiatives as well. All forms of transportation --roads, railways and waterways --are being rapidly expanded. Road connectivity and electricity are being brought to rural areas. Many new schemes were introduced after the SDGs came into light. Schemes like Make in India. The 'Make in India' program is an initiative launched to encourage companies to increase manufacturing in India. The increased manufacturing will push the investment limit which would in turn trigger infrastructure building. Another thing that showed impact of SDGs was NHAI. The NHAI was created through the promulgation of the National Highways Authority of India Act, 1988.Section 16(1) of the Act statesfunction of NHAI is to develop, maintain and manage the national highways and any other highways vested in, or entrusted to, it by the Government of India. The government contracts out the concessions/rights to build, operate and maintain parts of highways, flyovers, underpasses, etc., to the private sector. The private partners are required to fund the project upfront. The ownership of the road assets generated through PPP is returned back to the government at last (end of the contract period). These PPPs on national highways are funded by the National Highways Authority of India (NHAI) on behalf of the Ministry of Shipping, Roads Transport and Highways (MSRTH). 12 th Five Year Plan -The 12 th plan mainly emphasised infrastructure building and increasing investments by the government and private. public-private partnerships was also recognised as an efficient arrangment. Total spending on infrastructure development was estimated to increase to 9.9 per cent of GDP in the 12 th plan from 7.5 per cent in the 11 th plan and 5.1 per cent in the 10 th plan. The Government of India is expected to increase its spending on the development of the transport sector to USD173.1 billion in the 12th plan. Renowned experts believe in order to achieve economic growth, infrastructure needs to be developed.

NATIONAL MANUFACTURING POLICY -The Department of Industrial Policy and Promotion (DIPP) under the Ministry of
Commerce and Industry has notified the National Manufacturing Policy (NMP) on November 4, 2011. The main objective of this policy is to enhance the share of manufacturing sector in GDP to 25% from 16% and creating 100 million jobs by 2022.Although this policy came before SDGs but it proves as a great initiative towards the target of the goals. MDGs accomplished various achievements including, decreasing the number of people living in extreme poverty by more than half i.e. to 836 million in 2015, gender parity in primary schools in the majority of countries, a reduction in the rate of children dying before their fifth birthday by more than half since 1990, a fall of 45 percent worldwide in maternal mortality, over 6.2 million malaria deaths averted and 37 million lives saved by tuberculosis prevention and treatment, access to improved drinking water sources for 2.6 billion people between 1990 and 2015. But still there are some forfeit, which paves the way for SDGs to barge in. The following point wise illustration will make the need of Sustainable Development Goals more clear -: Around 800 million people still live in extreme poverty and face hunger. Between 2008 and 2012, millions of people were forced to migrate from their homes due to natural calamities. This number is predicted to rise as the planet's increasing temperature invites more extreme weather conditions. Rising sea levels and rapidly melting glaciers are the signs. 40 percent of the global population is affected with the water scarcity and is projected to increase with the drying out of fresh water lakes. Approx 1 billion people still practice open defecation. Gender inequality persists in spite of more representation for women in parliaments and gender parity in schools. TCA Anant and Ram Singh made a study on distribution of highways on PPP basis and used logit probability function, correlation, dummy.

OBJECTIVES -
To study the growth of national highways in India.
To study the infrastructure building in 12 th Five Year Plan. Impact of infrastructure building on growth of Indian economy.
METHODOLOGY -NHAI -National Highway Authority of India on the half of GOI develops, maintains national highways of India. The progress of highways accounts to infrastructure development.
Source: planning, Ministry of Road Transport and Highway for analysing the growth in particular sectors.
As per 31 st October 2016 - In allocation of spending there is a huge share of electricity and telecom. After these two, roads and bridges are given the maximum allocation.

NHDP Components
Source: International finance corporation report, Aranca Research.
There can be seen significant rise in infrastructure spending from 11 th FYP to 12 th FYP. In electricity the spending became almost double. While in telecom sector it became three times in 12 th FYP as compared to 11 th FYP.
Impact of infrastructure building on national economy growth -Does infrastructure building have an impact on the national economy? To study the impact, GDP is used as an indicator. The following data shows contribution made by gross fixed capital formation in GDP every year.