Impact of India's Infrastructure Spending Increased public spending on infrastructure enhances overall business conditions . Better in...
Impact of India's Infrastructure Spending
Increased public spending on infrastructure enhances overall business conditions.
Better infrastructure makes India more appealing to private investors.
Infrastructure projects are expected to generate jobs in higher-paying sectors.
By creating more non-agriculture jobs, infrastructure spending helps reduce surplus labor in agriculture, potentially increasing agricultural productivity
Increased job opportunities and higher productivity can lead to higher incomes.
Challenges
Low participation in higher education and gender gaps limit the creation of a skilled workforce, which restrains income growth.
High unemployment and weak real wage growth can slow down overall consumption and income growth.
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