ABSTRACT
This chapter considers infrastructure to be the physical stock of the transport and communication sectors. It focuses on quantitative assessment of the impact of infrastructure stock on the Indian state gross domestic product (GSDP). Transport infrastructure is one of the most extensive public sectors, and its impact is felt differently depending on the stage of development in the region. The Asian Development Bank reports that in rural India, strong links between rural electrification improvements and poverty reduction. India is the one of the largest markets in telecommunications in terms of both mobile phone and internet users. In India, the road network is a major asset for infrastructure. Our production function framework studies the impact of inputs such as capital investment, labour force and infrastructure development on the GSDP. Nominal GSDP may vary because the price of commodities increases or decreases from year to year. Reverse causality is when changes in the GSDP are expected to affect the infrastructure variables.
