Why India’s Local Infrastructure Lags – And How to Fix It
India is a land of immense “richness” – from its vibrant human capital to its bold economic strides. Yet, a glaring paradox persists: despite growing individual prosperity, the quality of public infrastructure, especially at the state and local levels, often falls short. Potholes scar roads, sanitation systems falter, and projects languish in delays. This isn’t a reflection of India’s inherent wealth but a consequence of flawed policies that stifle progress. The solution lies in surgical policy reforms that dismantle systemic inefficiencies and curb endemic corruption, unlocking equitable prosperity from the ground up.
The root of poor local infrastructure isn’t just funding shortages or technical limitations. It’s the pervasive corruption that thrives in opaque, unaccountable systems, particularly where small contractors dominate.You walk out of world class airport or squeaky clean railway station or take an arteriole road from world class expressway and it appears that you have entered another country. Why infrastructure built and maintained by Central/federal Govt is world-class but at State level or Municipal level it is squalor all around?
All the infrastructure and public amenities are build by private contractors who are paid by Government and together they abysmally fail in either building it properly or maintaining it properly and do nothing to keep it clean. These contractors are awarded the contracts to construct, repair or maintain the public infrastructure on the basis of competitive bidding. But it appears this system is not bringing meritorious bidders out.
A key issue in this problem is collusive bidding: multiple bids for public contracts are often submitted by members of the same family or group, rigging the process to secure inflated contracts under the guise of competition. To transform this broken system, three targeted policy changes can pave the way for transparency, accountability, and citizen-driven progress.
1. Mandate Business Name Registration for All Contractors
Many small-scale contractors operate informally, using personal names as their “business” identity. This anonymity enables collusion and fraud. Requiring every proprietorship or corporation to register a distinct business name creates a traceable, formal identity. This simple step makes it harder for individuals to hide behind multiple entities, ensuring a public record that fosters accountability and deters corrupt practices.
2. Enforce Transparent Bidding Disclosures
To tackle collusive bidding head-on, tender documents must include a mandatory declaration. Bidders should disclose whether other bids for the same project come from family members or associated entities. Paired with registered business names, this requirement exposes hidden connections, enabling authorities to disqualify collusive bids. The result? Genuine competition, fair pricing, and a cleaner procurement process.
3. Introduce a Public Feedback Rating System
Quality infrastructure demands accountability beyond the contract award. A public feedback rating system, hosted on accessible digital platforms, empowers citizens to evaluate completed projects based on quality, adherence to specifications, and performance. Contractors with consistently high ratings gain a competitive edge in future tenders, while poor performers face reputational and financial consequences. This mechanism incentivizes excellence and deters shoddy work, putting citizens at the heart of infrastructure oversight.
Together, these reforms shift India’s infrastructure landscape from opacity and manipulation to transparency and accountability. By addressing the policy failures that fuel corruption, they unlock the nation’s vast potential to deliver world-class public goods that match its economic and human dynamism.
For a deeper exploration of these issues and transformative solutions, check out Corruption in India: The History, Law and Politics of Corruption, available on Amazon. Join the movement to reimagine India’s infrastructure – one policy, one project, one citizen at a time.
