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Difference between Economic Infrastructure and Social Infrastructure

Last Updated : 24 Jul, 2023
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Infrastructure refers to all such activities, services, and facilities needed to provide different kinds of services in an economy. Simply put, it is the support system for the economic and social development of the country. The infrastructure facilities are crucial for the development of agriculture, industry, and now, increasingly, the services sector. Social development also depends on the development of the infrastructure. Since India’s economic reforms in 1991, the government has placed a significant emphasis on infrastructure development. Infrastructure can be categorised into two different heads; viz., Economic Infrastructure and Social Infrastructure.

Difference between Economic Infrastructure and Social Infrastructure

What is Economic Infrastructure?

It includes the infrastructure associated with energy, transportation, and communication. Under this, promoting activities, like the production and trade of goods and services is essential. Besides, economic infrastructure has a direct positive impact on the process of production and distribution in an economy. Simply put, this infrastructure provides direct support to the economic system.

What is Social Infrastructure?

It includes the infrastructure associated with education, health, and housing. It entails offering all services that enhance the quality of human resources. Social infrastructure does not have a direct influence on the economic system; however. it indirectly impacts the economy by achieving some social objectives. 

Difference between Economic Infrastructure and Social Infrastructure

Basis

Economic Infrastructure

Social Infrastructure

Meaning It includes the infrastructure associated with energy, transportation, and communication. It includes the infrastructure associated with education, health, and housing.
Support to Economic System Economic Infrastructure directly supports the economic system. Social Infrastructure indirectly supports the economic system.
Helps in It helps in the improvement of the quality of economic resources and increases the stock of physical capital in the economy. It helps in improving the quality of human resources and increases the stock of human capital in the economy.
Example Railways, Roads, Waterways, Telecommunication Systems, Water Supply, Electricity, etc. Health Services, Education, Sanitation, Housing, etc.

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