All Exams Test series for 1 year @ ₹349 only
Question

In 2018, what was the investment in infrastructure as a percentage of GDP in India?

The correct answer is

30

India's Infrastructure Investment as a Percentage of GDP in 2018

The question asks about the level of investment made in infrastructure within India during the year 2018, specifically as a proportion of the country's Gross Domestic Product (GDP). Understanding this figure provides insight into the country's focus on developing its foundational physical assets which are crucial for economic growth.

Infrastructure investment includes spending on essential facilities and systems serving a country, city, or area, such as transportation (roads, railways, ports, airports), communication networks, utilities (water supply, sewage, electricity), and public buildings. GDP, or Gross Domestic Product, is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Knowing the infrastructure investment as a percentage of GDP helps in assessing the government's priority and the overall pace of infrastructure development relative to the size of the economy. Different sources might provide slightly varying figures based on methodologies, but the options presented indicate a specific range.

Let's look at the question and the provided options:

Question In 2018, what was the investment in infrastructure as a percentage of GDP in India?
Option 1 28\%
Option 2 30\%
Option 3 44\%
Option 4 22\%

Based on available data for 2018 regarding India's infrastructure spending relative to its economic output (GDP), the figure stood around 30\%.

Therefore, the investment in infrastructure as a percentage of GDP in India during 2018 was approximately 30\%.

Understanding Infrastructure Investment and GDP

Infrastructure is the backbone of any economy. It facilitates trade, improves connectivity, boosts productivity, and enhances the quality of life. Investment in infrastructure can come from government spending, public-private partnerships, and private sector projects.

GDP represents the total value of goods and services produced. When infrastructure investment is expressed as a percentage of GDP, it shows how much of the total economic output is being directed towards building and improving these essential facilities.

  • A higher percentage generally indicates a greater focus on infrastructure development.
  • It can also reflect the maturity of the economy and its development needs.
  • Comparing this percentage across different years helps track progress in infrastructure creation.

Revision Table: Key Data Points on India's Infrastructure

Aspect Detail (Based on Question Context)
Year 2018
Country India
Metric Infrastructure Investment as \% of GDP
Value (Approx.) 30\%

Additional Information: India's Infrastructure Growth and Importance

India has been actively investing in infrastructure to support its economic growth ambitions. Key areas of focus include:

  • Transportation: Expanding road networks (like national highways), modernizing railways, developing new airports and upgrading existing ones, and enhancing port capacity.
  • Energy: Increasing power generation capacity (including renewables), improving transmission and distribution networks.
  • Urban Infrastructure: Developing smart cities, improving water supply and sanitation, and building affordable housing.
  • Digital Infrastructure: Expanding broadband connectivity and digital services.

Significant investment in these areas is considered crucial for attracting foreign investment, creating jobs, improving logistics efficiency, and making India a more competitive economy globally. The government often sets targets and allocates substantial budgets for infrastructure projects, recognizing their multiplier effect on the economy.

While the 2018 figure provides a snapshot, tracking this percentage over several years is important to understand the long-term trend and commitment towards infrastructure development in India.

Was this answer helpful?

Important Questions from Economic and Financial Affairs

  1. As per the Economic Survey 2020-21, India's real GDP growth is estimated to contract by ______ in financial year 2020-2021.

  2. The Government of India has set a target of achieving how much solar power capacity by the year 2022?

  3. In which year was the new currency symbol of the Indian rupee officially adopted?

  4. Which of the following statements about the detailed corporate governance norms for listed companies issued in April 2014 by SEBI is/are correct?

    1. It provides for stricter disclosures and protection of investor rights, including equitable treatment for minority and foreign shareholders

    2. Under the new norms listed companies are required to provide the option of facility of e-voting to shareholders on all resolutions proposed to be passed at general meetings

    Select the correct answer using the code given below.

  5. Pradhan Mantri Jan-Dhan Yojana (PMJDY ) now has in excess of 472 million accounts. Which state has topped this List (as on October 12, 2022)?

Need Expert Advice?

Start Your Preparation with Prepp Mobile App

Download the app from Google Play & App Store
Download the app from Google Play & App Store
Prepp Mobile App