Today these all elements are interrelated and help to build the complex system of any country. Government invests a huge part of income of country on the development of infrastructure.
Contribution of Infrastructure and Finance
Help in Industrialization
Developments of infrastructure contribute a lot in growth of industries. Development in communication system help to carried out all business process more optimally that helps to increase the profit of companies. That ultimately increases the profit of country.
Over bridge and metro rail project help in transportation.
Generate more employment
For any project man power are required and after completion of any project they need to hire people to carried out the activities. For example after completion of metro rail project they need to hire people for ticket counter, security, driver, etc.
Ultimately it helps to generate employment that helps to increase the per ca pita income of country.
Development of financial institutions
Development of financial institution act as catalyst to carried out the activities of business process. Expansion in same product line or in different product line, companies required finance. The capital requirement of the company is full filled by these institutions. They are also making considerable efforts to facilitate the process of emergence of new entrepreneurs for setting up enterprises in small scale sector.
It helps to develop the backward region and motivate people to become an entrepreneur.
That ultimately contributes in growth of country.
Increase living standards
Employments, industrialization, and development of entrepreneurship ultimately help people to become financially strong and increase their standard of living.
Promote foreign Trade
Supports from financial institutions help business man to trade outside the country. It is an important factor of the development of any country. Foreign trade helps in the optimum use of natural resources. It ensures the presence of stable price by avoiding wide fluctuations in prices. It tries to equalize the world price. It enables a country to import those goods which it cannot produce. It ensures large production because the production is carried on to meet the demand of its people as well as world market. Large scale production also ensures a great deal of internal economies which reduces the cost of production.
