Infrastructure-social and economic, facilitates production. The role of infrastructure in economic production can be understood well by the following example : If agriculture is devoid of irrigation facilities then it would entirely depend on the monsoon that may hamper its production and productivity.
(ii) As irrigation is necessary to enhance the
productivity of agricultural sector, in the same manner infrastructure is essential for the smooth and efficient production of all sectors of the economy. Similarily, industrial production in the absence of proper means of transportation may lead to delays in the movement of raw materials, capital goods and finished goods. This in turn leads to delays in the production process and, thereby, hampers industrial production.
(iii) Infrastructure is the necessary condition for higher productivity and higher production