Answer to Question #239972 in Economics of Enterprise for amaya

Question

India is failing to reach its full economic potential because of poor rail, road and electricity infrastructure as well as a lack of skilled civil engineers. Which factors of production need to be increased?

Answer 1

The factors of production which needs to be increased so as to boost infrastructure in India are Land and capital since land will provide room for construction of railway lines and roads while capital will be used to purchase the necessary equipments and cater for labour.