Government Implications of Infrastructural Development and CSR in Industry 4.0

In a country, the quality and availability of infrastructure determine the investment decisions of domestic firms as well as foreign direct investors. Developing infrastructure significantly enhances a region’s economy by boosting the competitiveness of the firms consequently making a country more productive and progressive. Since 2014, India has witnessed tremendous infrastructural development; however, the development growth is yet not sufficient. According to World’s Bank Logistic Performance Index 2018, India still stands at 44th position among 167 nations. A growing economy like India requires more robust infrastructural support at all levels to have a multiplier effect on overall progress and economic growth. India focused its SDG 9 (Sustainable Development Goals 9) to provide strong infrastructure for promoting innovation, inclusiveness and sustainable growth of industries. However, economies like India soon become paralyzed with such initiatives due to lack of revenue sources, public distrust and discontent and souring debt burdens despite enabling infrastructural support to the growing private sector. Looking at the facts, Government of India made CSR as mandatory on April 1, 2014, for all public and private sector firms operational in India. The initiative was launched to make industries contribute toward burgeoning environmental issues and societal needs. These policies signaled the expectations from business firms for increasing their contribution and commitment toward social and environmental issues along with economic development. The objective of this chapter is to analyze the implications of governmental policies of infrastructural development and CSR on Industry 4.0. The focus would be to analyze the current policies and practices of industrial infrastructural development and CSR in India, the impact on industrial development and consequent effects on overall economical, social and environmental growth.