Fourth, much more active use of special economic zones and export processing zones as incentive schemes for export-oriented enterprises. Improvements in infrastructure India's infrastructure is notoriously bad. The road networks are insufficient and in very poor quality. Ports are completely inadequate, so that most exports must be transshipped through Singapore or Sri Lanka, rather than shipped directly from Indian ports. Airports are insufficient and the airspace is reserved for just a few carriers.
Telecommunications are notoriously poor in quality and coverage.
Electricity supplies are irregular, scarce, and of low quality. And, in general, neither the government at the Centre nor those in the States can afford to upgrade these infrastructure systems out of budgetary funds. Indeed, many of these sectors already impose huge fiscal costs as government provides overt and hidden subsidies to these key sectors. The key is regulatory change, involving two main steps. First, regulatory and oversight responsibilities for almost all infrastructure should be devolved to the State-level.