INDIAN ROADWAYS: AN INTROSPECTION

Introduction 

We have all probably heard or read about the Golden Quadrilateral, Yamuna Expressway, Kona Expressway, etc. These projects are only the beginning of what seems to be a new era of development in India. Roadways are one of the most important assets of a nation. Their contribution to economic growth and development is manifold. India has the benefit of being a large country with a lot of resources. With the rise of both roadways and railways, India has endless potential to become an even bigger economic powerhouse. 

Budget allocation for roads and highway development across India

source: statista

What are the recent developments in Indian roads?

There has been an active investment in the development of road infrastructure by the Indian Government with a consistent increase in the construction of National Highways/roads, with 10,300 km constructed in 2022-23.

The ministry has utilised 30 lakh tons of garbage in road construction for Delhi Ring Road project, demonstrating a proactive approach towards waste management and sustainable infrastructure development. Moreover, there has been a significant introduction of bamboo crash barriers, providing enhanced strength and durability while generating employment opportunities and promoting environmental sustainability. 

 As of 31st December 2023, India has completed and placed into use over 35,000 kilometers (22,000 mi) of four or more lane highways connecting many of its major manufacturing, commercial, and cultural centers.

How will it impact Micro, Small, and Medium enterprises and rural development?

These recent developments in Indian roadways signify a transition from a rail-based economy to a road-based economy. The central benefit of that is the improvement in connectivity and transportation. Businesses, especially MSME enterprises will now be able to cut down on transportation costs, freight charges, and conveyance fees. The development of roadways can help prevent the destruction of goods when being transported from interior areas to marketplaces. These are all major benefits of this development towards trade in India, even more so for smaller firms that are more sensitive to these kinds of issues. The development of new highways and expressways in rural and interior areas of the country will be able to connect them to major cities as well as each other. Rural areas will now be able to experience major improvements in standard of living. 

How do Indian roadways significantly improve the import and export of our country?

Road infrastructure is instrumental to international trade. Good road infrastructure is vital to a country’s competitive edge in imports and exports and a lack of it may hinder commerce and raise freight and transport costs. Over the years, the arrival of trucks with shipments and logistics of commodities at ports via roadways has increased significantly. The government also encourages truck drivers to replace their outdated, inefficient trucks with newer, more fuel-efficient ones. It will prevent engine problems and allow trucks to run smoothly for extended periods, allowing for better logistics. Stoppage times and delays have decreased due to the e-way bill and GST tax collection at state crossings, which has also resulted in lower fuel use. Import and export need the digitisation of logistics and documents connected to freight transit. To increase logistics performance, GPS trackers, electronic documentation, and door-to-door cargo tracking have been implemented. These measures have reduced the freight costs involved in exports and imports over the years. 

World Bank LPI (Logistics Performance Index) 

The LPI is a benchmarking tool to measure the performance of trade logistics. The LPI 2018 makes comparisons across 160 countries. 

How do Indian Roadways Affect Tourism and Enhance Connectivity?

In India, a drastic change can be seen over the last 20 years due to the fast development of state highways, national highways, and expressways. Yamuna Expressway has introduced a facility to travel fast from Agra to Noida. Agra has a good tourist influx, which will certainly add up to the development of the road transport network. Road Transportation is very convenient & comfortable for short distances as airlines, railways, and water transport have their limitations. It also provides a great amount of flexibility as compared to other transportation modes. The road linkages in tourist destinations play a very important role. Due to the good conditions of roads, tourism in India has leveled up to a new high. Over the years, India has witnessed significant growth in road mobility, supported by improved connectivity between cities, towns, and villages. Indian Government has started a project called “BharatMala Pariyojana”: with an aim to construct 66,100 km of economic corridors, borders and coastal roads, and expressways, strengthening the national highway network.

Do Indian Roadways attract Foreign Investments and create job opportunities?

As of 2023, 100% Foreign Direct Investments (FDI) is allowed under the automatic route in the roads and highways sector. Investments worth 286 billion U.S. dollars were planned for roadways for the fiscal year 2020 to 2025. Furthermore, proposals are being made by the Indian Government to allow Limited Liability Partnerships (LLP) so that foreign entities are attracted to invest in the roadway infrastructure in India.

Apart from FDI, Indian roads play a crucial role in creating job and employment opportunities. According to recent estimates, with every 10% increase in cost savings due to the improvement or provisioning of roads, 5.6% more jobs can be created. As per the NHAI report,  the construction of highways and expressways has created around 55000 direct jobs and 100000 indirect jobs per 1000 km of road construction.

Conclusion

In conclusion, while contributing significantly to economic development, challenges such as traffic congestion, inadequate infrastructure, and safety concerns, India addresses these issues through sustainable planning, technological advancements, and effective policies that will be crucial for enhancing the efficiency and safety of Indian roadways in the future. It is indeed exceptional to know that a nation’s transportation system can drive economic growth, improve quality of life, and connect people and communities. Also, it is a fact that is still being written, as we continue to push the boundaries of what is possible and chart a course towards a brighter, more sustainable future.