The availability and quality of infrastructure are key to determining the success of manufacturing, agricultural, trading, and other business activities. Infrastructure comprises basic physical installations, such as roads, utilities and sanitary systems, that are required for the proper functioning of a society and an economy. Without sufficient infrastructure, the economy as a whole is bogged down with higher operating costs and suffers a competitive disadvantage. Poor infrastructure also affects the country’s ability to attract foreign direct investment and limits international and inter-state trade. Government intervention in infrastructure development is therefore considered to be necessary and beneficial, and so infrastructure availability and quality are indicators of economic governance.
The Infrastructure and Business Development Services Sub-index aims to measure the availability of business development facilities, and the availability and quality of infrastructure.
The higher overall index score along with the individual scores for sub-indices always refer to a better performance within the context of the BEI.