Topic: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
4) The issue of paused infrastructure projects in India, is an indicator of market and regulatory failure. Discuss.(250 words)
Why this question:
The question is pertaining to the hurdles infrastructure in India are facing due to market failures and regulatory failures.
Key demand of the question:
The answer must discuss what are the issues with respect to infrastructure projects in India, what are the causes of such issues and what needs to be done.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Begin with brief intro on infrastructure projects and their significant contribution in the growth and development of the country.
Discussion should include the following:
Explain that India has an enormous infrastructure gap, but it can be bridged by cooperation between the public and private sectors.
Discuss the challenges infrastructure projects are facing due to market and regulatory failures like corruption, political and regulatory risk, access to financing and macroeconomic instability.
Suggest what needs to be done to overcome these bottlenecks.
Conclude with way forward.