Transport

Infrastructure
A country's capacity for sustaining steady economic growth is
greatly influenced by its cohesive and well-coordinated
transportation network.

India's transportation network is made up of a variety of

different modes and services, including airports, airlines, inland
waterways, ports, railroads, highways, and road transport.

In the past few years, the development of India's transportation

infrastructure has accelerated dramatically in all areas, including
roads, railroads, and ports.

The Indian transportation industry is predicted to expand at a

compound annual growth rate of 5.9%, making it the fastest-
growing sector of the nation's infrastructure overall.
The Bharatmala project, electrification of railroad tracks,
emphasis on high-speed trains, the Sagarmala
programme, and active work on e-mobility solutions for
clean and affordable population mobility are just a few of
the initiatives the government has launched in order to
expand and develop the sector across the nation and
create a world-class infrastructure.

Also, the primary focus has been on improving the

country's logistics infrastructure and inter-modal
transport links through a successful and beneficial public-
private cooperation (PPP).
Infrastructure
With a total length of 5.89 million kilometres, India has the second-largest road
network in the world (kms)

90% of India's total passenger traffic commutes on the country's road network,
which transports 64.5% of all commodities in the nation

India's roadways are responsible for 80% of its passenger travel as well as 60% of
Road

its freight or cargo transportation

The separate state or union territory governments are responsible for managing
and overseeing India's diverse types of transportation as well as its extensive road
infrastructure. The National Highways Authority of India (NHAI), which is under the
control of the Central Government, is the exception.
• Roads are the dominant mode of transportation in
India today.
• They carry almost 85 percent of the country’s
passenger traffic and more than 60 percent of its
freight.
• The density of India’s highway network -- at 0.66 km
of roads per square kilometer of land – is similar to
that of the United States (0.65) and much greater
than China's (0.16) or Brazil's (0.20).
• However, most roads in India are narrow and
congested with poor surface quality, and 33 percent
of India’s villages do not have access to all-weather
roads.
By taking on several projects for the improvement
of infrastructure and meeting the sector's financial
needs, the private sector has also made a
noteworthy contribution to the sector.

With innovative initiatives like the Hybrid Annuity

Model (HAM), Toll-Operate-Transfer (TOT)
model, improved land acquisition process, the
introduction of masala bonds, and Infrastructure
Investment Trusts (InvITs), among others, the road
sector has attracted private investors
• Even though they make up just 2% of India's total
road infrastructure, national highways transport
more than 40% of all road freight.
• In India, there are 259 national highways that span
more than 52,000 kilometres.
• India's road map displays five different types of
roads, including:
National Highways
State Highways
Major District Roads
Other District Roads
Village Roads
Rail Transport in
India
• The Indian railway network is recognized as the
backbone and lifeblood of the country's
economy.
• Indian railways are the fourth largest in the
world, behind those of the US, China, and
Russia, and almost encircle the whole country.
• The entire infrastructure is under the control
of the Railways Board, which in India has
exclusive rights to provide rail services.
• Railways continue to be the most preferred
mode of transportation for the majority of
Indians when traveling great distances because
of its low cost and efficient operations.
• With investment possibilities in areas like
the elevated rail route in Mumbai, some of
the dedicated freight corridors, freight
terminals, station renovations, and power
generation and energy-saving initiatives,
the Indian Railways has gained traction.

• By implementing laws that are favorable to

investors, the Indian government has
prioritized investments in rail
infrastructure.

This Photo by Unknown Author is licensed under CC BY-SA-NC

 The process of allowing foreign direct investment (FDI) in

FDI in Railways
the railways to upgrade the infrastructure for freight and
high-speed trains has advanced swiftly.

The government has permitted 100% FDI in the railroad

industry

With 15,000 km being converted to automatic signalling and

37,000 km to be equipped with "KAVACH," the domestically
built Train Collision Avoidance System, Indian Railways is
advancing and inventing technology in fields like signalling
and telecommunication.
 Aviation
• Throughout the next ten years, India, which is
currently the world's seventh-largest civil aviation
industry, is anticipated to overtake the United
States as the third-largest civil aviation market
• In the last three years, India's civil aviation sector
has become one of the fastest-growing in the
nation
• It can be broadly divided into three categories:
scheduled air transport service, which includes
both domestic and international airlines; non-
scheduled air transport service, which includes
charter operators and air taxi operators; and air
cargo service, which includes the air delivery of
mail and cargo.
 Civil Aviation Policy

GoI has unveiled the Civil Aviation Policy in 2016; aims to move to a more liberal
administrative and regulatory regime.

Fundamental objectives include affordability, connectivity and ease of doing business

100% FDI Investment will allow access to new sources of capital which will boost both
expansion and consolidation

Liberalized Open Skies (for all countries beyond 5000 kms radius from New Delhi) and
Code Share Agreements
Keen to develop India as the MRO hub ( Maintenance, Repair and
Overhaul) in Asia. MRO Business of Indian Carriers is valued at USD 1bn.
90% was outsourced initially

Development and modernization of Indian Airports and upgradation of

quality of services

5/20 rule abolished provided the airline deploys 20 flights or 20 pc of its

capacity for domestic operations
Ports and Shipping
• India is strategically located on the world’s
shipping routes with a coastline of
approximately 7,517 km.
• Maritime transport handles around 70% of
India’s trading in value terms.
• As of 2021, India owns over 30% global
market share in the ship breaking industry
and is home to the largest ship-breaking
facility in the world at Alang.
• To promote India's shipping and port
industry, the government has also
introduced various fiscal and non-fiscal
incentives for enterprises that develop,
maintain and operate ports, inland
waterways and shipbuilding in India .
• The Major Port Authorities Bill, 2016, the
Sagarmala programme, and the "Landlord
port" model have all played a key role in
boosting the Ports & Shipping industry.
• The Maritime India Vision 2030 launched in
2021 has identified over 150 initiatives to
boost the Indian maritime sector.
• The vision serves as a blueprint to achieve an
accelerated and coordinated development of
India’s diverse maritime sector,
comprehensively identifying over 150
initiatives covering all facets of the country’s
maritime sector.
• In 2017, the government launched the
ambitious Sagar Mala Program with the vision
of port-led development and growth of logistics-
intensive industries. Under the program, $123
Bn would be invested across 415 projects across
the following identified components:

 Port Modernization and New Port

Development
 Port Connectivity Enhancement
 Port-Linked Industrialization
 Coastal Community Development
 Inland Waterways

• Inland Water Transport (IWT) is a fuel efficient,

environment friendly and cost effective mode of
transport having potential to supplement the over
burdened rail and congested roads
• India has about 14,500 km of navigable waterways
which comprise of rivers, canals, backwaters,
creeks, etc.
• About 55 million tones of cargo is being moved
annually by Inland Water Transport (IWT), a fuel -
efficient and environment -friendly mode
• Freight transportation by waterways is highly
underutilized in the country as compared to
developed countries.
India's hinterland connectivity is mainly based on road and rail with domestic waterways— both
coastal shipping and inland waterways—playing a limited role.

Waterways are found to be cost effective as well as an environmentally friendly means of

transporting freight.

In India, Inland Water Transport (IWT) has the potential to supplement the over-burdened railways
and congested roadways.

In addition to cargo movement, IWT sector also provide a convenient function in related activities
such as carriage of vehicles {on Roll-on-Roll-off (Ro-Ro) mode of cross ferry} and tourism.
 Inland Waterways Authority of India

The Inland Waterways Authority of India (IWAI) came into existence on 27th October
1986 for development and regulation of inland waterways for shipping and navigation.

The Authority primarily undertakes projects for development and maintenance of IWT
infrastructure on national waterways through grant received from Ministry of Shipping.

The head office of the Authority is at Noida and regional offices at Patna, Kolkata,
Guwahati and Kochi

The National Waterways Act, 2016 has declared 111 inland waterways as ‘National
Waterways’ (NWs) in the country to promote shipping and navigation on them.

The total length of NWs is 20,275 km spread across 24 States in the country.
Thank You!