The common belief is that better infrastructure will result in better supply chains. Better infrastructure in India is defined by better roads, bigger airports, shiny bridges.
Really? If you have been to Gurgaon of late there is a classic case study on of infrastructure gone wrong, where toll collector actually lets traffic flow for free to ensure smaller queues !!
Similar case can be seen at new Shamshabad airport at Hyderabad or to be opened airport at Bangalore. You will never be able to have same day meeting at Hyderabad and Bangalore anymore as time to reach airports is 90-120 minutes one way !!
Thus, we are spending a lot of money shiny infrastructure to solve only part of the problem. This will only increase capital intensity of growth as it has happened in China without proportionate benefits to the economy.
More on this argument in future posts...
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