Physical & social infrastructure in India & its relationship with economic development

- Study aim is to evaluate the contribution of infrastructure in the economic development of India.
- Time period considered for the study is 1995-2013.
- The study used ADF, PP, Unrestricted VAR and Granger Causality models.
- Results show positive & significant relation between infrastructure and economic development of India.

This study examines the relationship between infrastructure (physical & social) and economic development in India. Time period of the study remains as 1995-2013. The study used Augmented Dickey-Fuller test and Phillips Perron unit root tests to observe the stationary nature of the data series. Unrestricted VAR (vector auto regression) and Granger causality models were employed for checking the causal relationship among social, physical infrastructure and economic growth. Results show that both economic and social infrastructure have a positive linkages with economic growth in India.