Impact on technological innovation: Infrastructure provides the key to modern technology in all sectors. Infrastructure such as railroad and electricity brought about radical changes in markets and production in the past. Similarly, the production and distribution activities in secondary sectors of the modern economy are influenced by the innovation in telecommunication sector.

Impact on structure of production and consumption: Infrastructure is central to the basic patterns of demand and supply, and to the economy's ability to respond to changes in prices or endowments of other resources. Provision of quality infrastructure affects the development of various sectors and, in certain cases, promotes development of a particular industry thereby affecting the structure of production and consumption. For instance, development of telecommunication sector promotes expansion of service, high technology, and financial sectors relative to manufacturing and goods-producing industries. The manufacturing industries need to adapt to changing environment and are expected to place the production closer to final consumers in the domestic market. This reduces the relative requirements of long-haul transportation and increase the requirement for short-haul transportation of manufactured goods.

Impacts of infrastructure on personal welfare: Infrastructure has a strong relationship with the welfare of the people. In most of the countries, the low income groups generally have less access to infrastructure, or face lower quality of services when they are available. For instance, low income groups are located in outskirts of the urban centres and they are compelled to travel longer distance for employment. This affects their productivity and access to employment and their capacity to earn future income.

Unavailability of basic infrastructure such as clean water, sanitation, affordable housing, power supply, transport and communications affects the quality of life. Improvements in water supply and sanitation have a large impact in reducing morbidity from water-borne diseases, reducing child mortality, and reducing the severity of diseases when it occurs. The low income groups are more prone to the ill-effects of the lack of reliable infrastructure services. They could not enjoy the direct and indirect consumption benefits of infrastructure services. For example, in case of unavailability of power supply, the affected people will have to forgo the benefits of extra hours of study time due to electric lighting, availability of new forms of entertainment, and access to labour-saving appliances.

In case of lack of reliable infrastructure services such as water supply, the people have to opt for higher alternatives to meet the basic needs. Access to improved water supply will allow people to save time and engage in income-generating activities. Inadequate infrastructure thus has multiple effects on health, and the individual's labour productivity and quality of life. Similarly, poor access to urban transportation will force them to walk and forgo time which could be spent on activities with higher utility. They will also have to forego the other indirect benefits such as scarifying employment at a better workplace, ability to take advantage of education, health or other important services. The inadequate access to infrastructure services affects the time allocations of the poor and thus their ability to engage in income-generating activities which would have a greater impact on the household's welfare.