Econometric Analysis of the Impact of Productive Infrastructure Investments on Economic Growth in India

The objective of the present study was to empirically evaluate the effect of various productive infrastructure investments on Indian economic growth by applying the time series econometric models. The study used data from 1990-91 to 2020-21, examining the impact of economic reforms introduced in the early 1990s on economic growth in selected states of India over thirty years. The main finding of the study showed that there could be a long-run equilibrium relationship between economic growth and infrastructure investments in the states of Bihar, Haryana, Himachal Pradesh, Jammu and Kashmir, Kerala, Madhya Pradesh, Maharashtra, Odisha, Tamil Nadu, Rajasthan, and West Bengal. It implied that the allocated funds for the infrastructure were utilised adequately in those states. The results confirmed that there was poor allocation of infrastructure investments in the states of Rajasthan, Himachal Pradesh and Odisha. The findings of this study will serve as a benchmark for policymakers and governments, enabling them to formulate effective infrastructure development strategies and allocate funds to reduce socio-economic disparities across Indian states.