What does infrastructure induces investments stands for.? 

It simply means that if you have the basic level of infrastructure say banking facilities, well-built roads, well connected transportation facilities, superior human capital (due to adequate number of schools and hospitals), then this implies that the foundation has been laid down. This foundation is the basic framework for any economic activity let it be putting up an industry or an IT park. Now, this framework will induce and attract entrepreneurs to make investments in form capital to initiate the economic activity.

Suppose, if you being an entrepreneur would you like to put up an industry in a rural area, where, there is poor connectivity with towns and cities, where, you don't have even a single ATM booth and bank. The answer is no. You would always look-up for a place that will have the basic amenities. This means that in such a place the infrastructure has been made available and this presence of infrastructure will induce you to make the required investment for putting-up your own factory- Mr. Entrepreneur smiley

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