How infrastructure creates forward and backward linkage?
Solution:
Infrastructure provides scope for expansion of one industry due to the expansion of the other industry by way of various linkages– forward and backward linkages.
The process of economic growth becomes a dynamic process in the presence of sufficient infrastructure facilities. This can be explained with the help of a forward linkage.
For example, if irrigation facilities boost agricultural production, then the related industries that depend on agriculture for the supply of raw materials simultaneously experience increased production.
Infrastructure creates backward linkages imply that the increase in production in Infrastructure sector will subsequently increase the demand for inputs thus escalate the output in those linked industries.
Infrastructure provides scope for expansion of one industry due to the expansion of the other industry by way of various linkages– forward and backward linkages.
The process of economic growth becomes a dynamic process in the presence of sufficient infrastructure facilities. This can be explained with the help of a forward linkage.
For example, if irrigation facilities boost agricultural production, then the related industries that depend on agriculture for the supply of raw materials simultaneously experience increased production.
Infrastructure creates backward linkages imply that the increase in production in Infrastructure sector will subsequently increase the demand for inputs thus escalate the output in those linked industries.
