Which of the following is essential for the development of a competitive manufacturing sector in India?
- AFinancial services
- BDigital infrastructure
- CWater tourism
- DTransportation infrastructure
Show answer and explanation
Correct answer: (d) Transportation infrastructure
Explanation
A competitive manufacturing sector needs goods to move cheaply and on time. Good transportation infrastructure (roads, railways, ports, airports and freight corridors) cuts logistics costs, which in India have been estimated at about 8–9% of GDP, higher than in many competing economies.
This is why the National Logistics Policy (2022), PM Gati Shakti (2021, a national master plan for multimodal connectivity) and the Dedicated Freight Corridors focus on transport. Financial services and digital networks help too, but transport is the basic need here; water tourism has no direct link.