Following points highlight the importance of infrastructure in development :
(i) Impacts Productivity—Nowadays, agriculture production hardly depends upon the natural means of irrigations. It means that, in absence of permanent means of irrigation, output of the agriculture would remain much lower than the potential output. Thus, high productivity is possible only when we have a strong sup-port system in terms of infrastructure facilities,
(ii) Induces Investment—Low investment points to low level of production and backwardness of an economy. A well developed infrastructure attracts foreign investors. Thus, infrastructure ; induces investment.
(iii) Generates Linkages in Production—Better means of transport and communication robust. system of banking and finance generates better interindustriaL linkages. It is a situation when expansion of one industry facilitates the expansion of the other.