Glossary term
Infrastructure: Meaning and Definition
Reviewed and approved by Dr. Anamika ShrivastavaPublished Last updated
Infrastructure is the set of support services and facilities on which production, trade and daily life depend, such as roads, railways, ports, power, telecommunications, schools, hospitals, sanitation and banking. Economic infrastructure covers energy, transport and communication; social infrastructure covers education, health and housing.
In more detail
Infrastructure is capital that serves many users, so private firms often under-supply it. Governments build it or partner with private firms. Good infrastructure lowers costs for farms and factories and gives households health, education and mobility. Gaps in power, roads and water are among the main constraints on growth.
Example
A farm needs roads and electricity to get inputs and sell produce; a child needs a school and clean water to grow into a productive worker.
Key points
- Raises productivity and quality of life.
- Economic and social types.
- Private sector and PPPs now invest too.
Common mistake
Thinking infrastructure means only roads and buildings.
Related terms
Where it is explained
This term is explained in Class 11 Indian Economic Development Chapter 8: Infrastructure.