An Empirical Analysis of the Impact of Industrialization on Infrastructure Development in Himachal Pradesh‪.‬

The importance of infrastructure for sustained economic development is well recognized. Infrastructure is a comprehensive term that comprises of necessary inputs, which are said to be the contributing factors in the development process. For the growth and development of industry we require power, roads, transportation, communication, banking and insurance etc. All these facilities together called as infrastructure of an economy. Hence development of infrastructure is necessary for the development of an economy. It plays an important role in the industrialisation of any region. On the other hand, industrial development of any region also affects the development of infrastructural facilities. Maizels (1963) had concluded that industrialization plays a crucial role in the development of a country by raising income, by creating and widening employment opportunities, by expanding trade and commerce and thereby increase the pace of capital formation and technology changes. Simon Kuznet (1948) looks industrialisation as "the permanent growth of the proportion of the non-agricultural sectors within the national economy running with considerable increase of the total industrial production as well as with the spread of up-to-date technology. Jozsef Bognar stated that industrialisation is an economic and social process affecting not only the technological standards of the given country but also the habits of the consumers, the way of thinking and the organization of the actions, processes and events in the life of the given society. Kerr (1962) pointed out that industrialisation helps to create an increasing level of general education for all, not only because it facilitates flexibility among the work-force, but also because as incomes rise, natural curiosity increases for formal education. Prasad (1957) was of the view that the impact of rapid industrialisation will by no means be confined only to economic sector of the people's life, influencing effectively the rate and process of saving and employment, but also shaping the social life favorable, providing the base for further industrialisation. Thus, the process of industrialisation in a particular region not only influence the economic sphere of people's life by raising income and employment opportunities but it also influences the social and cultural life with increased opportunities for education, superior housing, public health and other infrastructural facilities. The review of literature has highlighted the various issues related to industrialization and development (Dhar et al., 1961; Singh, 1982; Lal, 1987; Sharma, 1998; Reddy, 1990; Dadibhavi, 1991; Gayithri, 1997; Mitra, 1999). No useful and prudent investigations have so far been conducted regarding impact of industrialisation on infrastructural development in Himachal Pradesh. This is the most important consideration, which has governed the choice of the research work. Therefore the present study is an attempt to examine the impact of industrialisation in infrastructural development in Himachal Pradesh. Main infrastructural aspects covered in this analysis are education, health, transport and communication, housing, electricity and water supply, banking, insurance, hotels and restaurants, parks and picnic spots and shopping facilities. Though the study is confined to Himachal Pradesh, is obviously has relevance and significance in industrial development in other states of India as well.