UGC NET COMMERCE December 2018 Q95 Multiple Choice Questions

Answer
Comment
Array

Option : B
Explanation : Infrastructure Bottlenecks
Quantitatively, India is rich in transport and communication network but qualitatively it is poor. The industries face shortage of raw materials. To meet this problem, they are located near the source of raw material which may not be richly endowed in terms of other factors of production. In our country, the position of power supply is poor and uncertain. Hence, both agriculture and industries fail to utilise their full capacity. Our economy also suffers from bureaucratic bottlenecks. The time lag in completion of projects, due to procedural hold ups inflates the total cost of the project and makes them financially unviable.
Its Remedy
Most infrastructure services in India have until recently been provided by public monopolies and quasi-monopolies and have been faced by several problems like lack of accountability, low productivity, poor financial performance and over-employment. In older to meet the challenges of rapid economic growth and international competitiveness, there is an urgent need to achieve greater efficiency and accountability in these sectors, much greater prevalence of commercial principles and much more competition in the provision and operation of infrastructure services. As the Government’s ability to undertake investment in infrastructure is severely constrained, it is necessary to induce much more private sector investment and participation in the provision of infrastructural services. The entry of private suppliers can also encourage better risk sharing, accountability, monitoring and. management in infrastructure sectors. The Government has, however, already introduced several structural reforms in the infrastructural sectors.
Government Steps
The Union Government has recently taken steps to upgrade infrastructure and bring Foreign Direct Investment (FDI) in infrastructure. This is a step in right direction. In this era of globalisation and liberalism, to maintain the competitive edge, we need to modernise and upgrade our infrastructure.