An Overview Of Transport Sector In India

September 26, 2023

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 intermodal transport links through a successful and beneficial public-private cooperation (PPP). 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. 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. 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.

In order to meet the goal of selling only electric vehicles by 2030, the government is also collaborating with various automakers and important policy stakeholders. To this end, the government has identified several crucial areas related to transportation mobility where significant policy reforms can be started.

For our nation to be connected and to promote economic progress, a system of intelligent transportation infrastructure is essential. There are many opportunities in areas like roads and highways, high-speed trains, port expansion, and multimodal hubs where private investments and legislative initiatives may play a crucial role in giving the nation a top-notch infrastructure.