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TRANSPORT 
INTRODUCTION 
A well–knit and coordinated system of transport plays an important role 
in the sustained economic growth of a country. The transport system in 
India comprises a number of distinct modes and services, notably 
railways, roads, road transport, ports, inland water transport, coastal 
shipping, airports, and airlines. Railways and roads are the dominant 
means of transport carrying more than 95% of total traffic generated in 
the country. Although other modes such as coastal shipping and inland water 
transport would play a greater role, the railways and roads would continue to 
dominate the transport landscape in the foreseeable future. 
FUNCTIONS OF TRANSPORT 
 1. Transport contributes in Growth of industries whose product requires 
quick marketing. Perishable articles like fish and green vegetables are carried 
to various consumers quickly even in distant markets through transport. 
 2. Transport helps in increase in the demand for goods. Through transport 
newer customers in newer places can be easily contacted and products can be 
introduced to them. Today markets have become national or international only 
because of transport. 
 3. Transport creates place utility. Geographical and climatic factors force 
industries to be located in particular places far away from the markets and 
places where there may not be any demand for the products. Transport 
bridges the gap between production and consumption centers.  
4. Transport creates time utility. Of late transport has started creating the time 
utility also. It has been made possible by virtue of the improvements in the 
speed of transport. It helps the product to be distributed in the minimum 
possible time. 
 5. Transport helps in stabilization of price. Transport exerts considerable 
influence upon the stabilization of the prices of several commodities by 
moving commodities from surplus to deficit areas. This equalizes the supply 
Page 2


 
TRANSPORT 
INTRODUCTION 
A well–knit and coordinated system of transport plays an important role 
in the sustained economic growth of a country. The transport system in 
India comprises a number of distinct modes and services, notably 
railways, roads, road transport, ports, inland water transport, coastal 
shipping, airports, and airlines. Railways and roads are the dominant 
means of transport carrying more than 95% of total traffic generated in 
the country. Although other modes such as coastal shipping and inland water 
transport would play a greater role, the railways and roads would continue to 
dominate the transport landscape in the foreseeable future. 
FUNCTIONS OF TRANSPORT 
 1. Transport contributes in Growth of industries whose product requires 
quick marketing. Perishable articles like fish and green vegetables are carried 
to various consumers quickly even in distant markets through transport. 
 2. Transport helps in increase in the demand for goods. Through transport 
newer customers in newer places can be easily contacted and products can be 
introduced to them. Today markets have become national or international only 
because of transport. 
 3. Transport creates place utility. Geographical and climatic factors force 
industries to be located in particular places far away from the markets and 
places where there may not be any demand for the products. Transport 
bridges the gap between production and consumption centers.  
4. Transport creates time utility. Of late transport has started creating the time 
utility also. It has been made possible by virtue of the improvements in the 
speed of transport. It helps the product to be distributed in the minimum 
possible time. 
 5. Transport helps in stabilization of price. Transport exerts considerable 
influence upon the stabilization of the prices of several commodities by 
moving commodities from surplus to deficit areas. This equalizes the supply 
 
and demand factor sand makes the price of commodities stable as well as 
equal. 
 6. Transport ensures even flow of commodities into the hands of the 
consumers through out the period of consumption. 
 7. Transport enables the consumers to enjoy the benefits of goods not 
produced locally. This increases the standard of living, an essential factor for 
further development of marketing and economy.  
8. Transport identifies competition, which in turn, reduces pries. Prices are 
also reduced because of the facilities offered by transport for large-scale 
production. Advantages op large-scale production is possible only due to 
transport.  
9. Transport increases mobility of labor and capital. It makes people of one 
place migrate to other places in search of jobs. Even capital, machineries and 
equipments are imported from foreign countries through transport alone. 
MEANS OF TRANSPORT 
 
 
 
Page 3


 
TRANSPORT 
INTRODUCTION 
A well–knit and coordinated system of transport plays an important role 
in the sustained economic growth of a country. The transport system in 
India comprises a number of distinct modes and services, notably 
railways, roads, road transport, ports, inland water transport, coastal 
shipping, airports, and airlines. Railways and roads are the dominant 
means of transport carrying more than 95% of total traffic generated in 
the country. Although other modes such as coastal shipping and inland water 
transport would play a greater role, the railways and roads would continue to 
dominate the transport landscape in the foreseeable future. 
FUNCTIONS OF TRANSPORT 
 1. Transport contributes in Growth of industries whose product requires 
quick marketing. Perishable articles like fish and green vegetables are carried 
to various consumers quickly even in distant markets through transport. 
 2. Transport helps in increase in the demand for goods. Through transport 
newer customers in newer places can be easily contacted and products can be 
introduced to them. Today markets have become national or international only 
because of transport. 
 3. Transport creates place utility. Geographical and climatic factors force 
industries to be located in particular places far away from the markets and 
places where there may not be any demand for the products. Transport 
bridges the gap between production and consumption centers.  
4. Transport creates time utility. Of late transport has started creating the time 
utility also. It has been made possible by virtue of the improvements in the 
speed of transport. It helps the product to be distributed in the minimum 
possible time. 
 5. Transport helps in stabilization of price. Transport exerts considerable 
influence upon the stabilization of the prices of several commodities by 
moving commodities from surplus to deficit areas. This equalizes the supply 
 
and demand factor sand makes the price of commodities stable as well as 
equal. 
 6. Transport ensures even flow of commodities into the hands of the 
consumers through out the period of consumption. 
 7. Transport enables the consumers to enjoy the benefits of goods not 
produced locally. This increases the standard of living, an essential factor for 
further development of marketing and economy.  
8. Transport identifies competition, which in turn, reduces pries. Prices are 
also reduced because of the facilities offered by transport for large-scale 
production. Advantages op large-scale production is possible only due to 
transport.  
9. Transport increases mobility of labor and capital. It makes people of one 
place migrate to other places in search of jobs. Even capital, machineries and 
equipments are imported from foreign countries through transport alone. 
MEANS OF TRANSPORT 
 
 
 
 
INDIAN TRANSPORTATION SYSTEM 
ROAD TRANSPORT   
OBJECTIVES 
Increasing the coverage and quality of roads and highways is critical to 
enhancing connectivity and internal and external trade. 
By 2022-23, we should achieve the following objectives:  
Increase connectivity by expanding the road network:  
Achieve the Bharatmala Phase-I target by completing 24,800 km by 2021-
22, including 2,000 km of coastal and port connectivity roads. 
Complete Phase I of the Pradhan Mantri Gram Sadak Yojana (PMGSY) 
with quality monitoring at every stage.  
Double the length of national highways (NHs) to 2 lakh km by 2022-23 
from the existing 1.22 lakh km.  
Widen single/intermediate lane (SL/IL) NHs and reduce the length of SL/IL 
NHs to less than 10 per cent of total length by 2022-23 from the present 26.46 
per cent. 
Improve the regulatory framework for roads to achieve better compliance, 
seamless connectivity, road safety and quality.  
As a signatory to the Brasilia Declaration, reduce the number of road 
accidents and fatalities by 50 per cent by 2020. 
CONSTRAINTS 
1. Capacity of existing highways: The existing length of the NH network is 
1.22 lakh km, which is 2.2 per cent of the country’s total road network of 
56.03 lakh km.5 The existing NH length with 4-lane and above NH 
standards is 27,658 km (22.59 per cent), and that with single/intermediate 
lane (SL/IL) width is 32,395 km (26.46 per cent); the remaining 62,379 km 
(50.95 per cent) is of 2-lane NH standard. Further, national and state 
highways are already overstrained, carrying more than 65 per cent of the 
Page 4


 
TRANSPORT 
INTRODUCTION 
A well–knit and coordinated system of transport plays an important role 
in the sustained economic growth of a country. The transport system in 
India comprises a number of distinct modes and services, notably 
railways, roads, road transport, ports, inland water transport, coastal 
shipping, airports, and airlines. Railways and roads are the dominant 
means of transport carrying more than 95% of total traffic generated in 
the country. Although other modes such as coastal shipping and inland water 
transport would play a greater role, the railways and roads would continue to 
dominate the transport landscape in the foreseeable future. 
FUNCTIONS OF TRANSPORT 
 1. Transport contributes in Growth of industries whose product requires 
quick marketing. Perishable articles like fish and green vegetables are carried 
to various consumers quickly even in distant markets through transport. 
 2. Transport helps in increase in the demand for goods. Through transport 
newer customers in newer places can be easily contacted and products can be 
introduced to them. Today markets have become national or international only 
because of transport. 
 3. Transport creates place utility. Geographical and climatic factors force 
industries to be located in particular places far away from the markets and 
places where there may not be any demand for the products. Transport 
bridges the gap between production and consumption centers.  
4. Transport creates time utility. Of late transport has started creating the time 
utility also. It has been made possible by virtue of the improvements in the 
speed of transport. It helps the product to be distributed in the minimum 
possible time. 
 5. Transport helps in stabilization of price. Transport exerts considerable 
influence upon the stabilization of the prices of several commodities by 
moving commodities from surplus to deficit areas. This equalizes the supply 
 
and demand factor sand makes the price of commodities stable as well as 
equal. 
 6. Transport ensures even flow of commodities into the hands of the 
consumers through out the period of consumption. 
 7. Transport enables the consumers to enjoy the benefits of goods not 
produced locally. This increases the standard of living, an essential factor for 
further development of marketing and economy.  
8. Transport identifies competition, which in turn, reduces pries. Prices are 
also reduced because of the facilities offered by transport for large-scale 
production. Advantages op large-scale production is possible only due to 
transport.  
9. Transport increases mobility of labor and capital. It makes people of one 
place migrate to other places in search of jobs. Even capital, machineries and 
equipments are imported from foreign countries through transport alone. 
MEANS OF TRANSPORT 
 
 
 
 
INDIAN TRANSPORTATION SYSTEM 
ROAD TRANSPORT   
OBJECTIVES 
Increasing the coverage and quality of roads and highways is critical to 
enhancing connectivity and internal and external trade. 
By 2022-23, we should achieve the following objectives:  
Increase connectivity by expanding the road network:  
Achieve the Bharatmala Phase-I target by completing 24,800 km by 2021-
22, including 2,000 km of coastal and port connectivity roads. 
Complete Phase I of the Pradhan Mantri Gram Sadak Yojana (PMGSY) 
with quality monitoring at every stage.  
Double the length of national highways (NHs) to 2 lakh km by 2022-23 
from the existing 1.22 lakh km.  
Widen single/intermediate lane (SL/IL) NHs and reduce the length of SL/IL 
NHs to less than 10 per cent of total length by 2022-23 from the present 26.46 
per cent. 
Improve the regulatory framework for roads to achieve better compliance, 
seamless connectivity, road safety and quality.  
As a signatory to the Brasilia Declaration, reduce the number of road 
accidents and fatalities by 50 per cent by 2020. 
CONSTRAINTS 
1. Capacity of existing highways: The existing length of the NH network is 
1.22 lakh km, which is 2.2 per cent of the country’s total road network of 
56.03 lakh km.5 The existing NH length with 4-lane and above NH 
standards is 27,658 km (22.59 per cent), and that with single/intermediate 
lane (SL/IL) width is 32,395 km (26.46 per cent); the remaining 62,379 km 
(50.95 per cent) is of 2-lane NH standard. Further, national and state 
highways are already overstrained, carrying more than 65 per cent of the 
 
road traffic. National highways carry 40 per cent of India’s total road 
traffic. 
2. Maintenance of existing infrastructure: The annual outlay earmarked for 
maintenance and repair of national highway stretches8 is only about 40 per 
cent of the funds required. This is one of the main reasons for the inability 
to take up timely maintenance interventions.  
3. Accidents and safety concerns: Road safety is a major issue in the country 
with nearly 400 road related deaths being recorded daily. In 2013, India had 
an accident death rate of 18.9 for every 100,000 people, higher than other 
South Asian countries such as Bangladesh (11.6), Mauritius (12.2) and Sri 
Lanka (13.7).9 At least a part of the fatalities is because of the poor quality 
of roads.  
4. Cost escalation for roads: Delays in acquiring land can affect project costs 
as the average cost of land has escalated from Rs. 0.80 crore per hectare 
during 2012-13 to Rs. 3.20 crore per hectare during 2017-18. 
WAY FORWARD: 
1. Increase connectivity by expanding the road network • Four projects 
to be undertaken: o Bharatmala Pariyojana Phase-I: complete 24,800-
km by 2021-22.10 o Special Accelerated Road Development 
Programme for the North-Eastern region (SARDP-NE), Phase ‘A’: 
improve about 4,099 km in the North-East. o ‘North-East Road 
Network Connectivity Project Phase I’: improve infrastructure in 
Meghalaya and Mizoram and enhance connectivity with inter-state roads 
and international borders o Chardham Mahamarg Vikas Pariyojna. • 
Improve the implementation capacity of states’/ UTs’ public work 
departments (PWDs) through institutional strengthening and 
training. A dedicated Metropolitan Urban Transport Authority in 
each city with a population of more than 1 million by 2022-23 is needed. 
o Similarly, set up dedicated cells for integrated planning, 
coordination and delivery of transport services in smaller cities. 
2. Improve road maintenance and safety • Maintain NH assets by 
adopting a maintenance management system (MMS). Earmark funds 
from the Central Road Fund (CRF) for maintenance activities. India 
Page 5


 
TRANSPORT 
INTRODUCTION 
A well–knit and coordinated system of transport plays an important role 
in the sustained economic growth of a country. The transport system in 
India comprises a number of distinct modes and services, notably 
railways, roads, road transport, ports, inland water transport, coastal 
shipping, airports, and airlines. Railways and roads are the dominant 
means of transport carrying more than 95% of total traffic generated in 
the country. Although other modes such as coastal shipping and inland water 
transport would play a greater role, the railways and roads would continue to 
dominate the transport landscape in the foreseeable future. 
FUNCTIONS OF TRANSPORT 
 1. Transport contributes in Growth of industries whose product requires 
quick marketing. Perishable articles like fish and green vegetables are carried 
to various consumers quickly even in distant markets through transport. 
 2. Transport helps in increase in the demand for goods. Through transport 
newer customers in newer places can be easily contacted and products can be 
introduced to them. Today markets have become national or international only 
because of transport. 
 3. Transport creates place utility. Geographical and climatic factors force 
industries to be located in particular places far away from the markets and 
places where there may not be any demand for the products. Transport 
bridges the gap between production and consumption centers.  
4. Transport creates time utility. Of late transport has started creating the time 
utility also. It has been made possible by virtue of the improvements in the 
speed of transport. It helps the product to be distributed in the minimum 
possible time. 
 5. Transport helps in stabilization of price. Transport exerts considerable 
influence upon the stabilization of the prices of several commodities by 
moving commodities from surplus to deficit areas. This equalizes the supply 
 
and demand factor sand makes the price of commodities stable as well as 
equal. 
 6. Transport ensures even flow of commodities into the hands of the 
consumers through out the period of consumption. 
 7. Transport enables the consumers to enjoy the benefits of goods not 
produced locally. This increases the standard of living, an essential factor for 
further development of marketing and economy.  
8. Transport identifies competition, which in turn, reduces pries. Prices are 
also reduced because of the facilities offered by transport for large-scale 
production. Advantages op large-scale production is possible only due to 
transport.  
9. Transport increases mobility of labor and capital. It makes people of one 
place migrate to other places in search of jobs. Even capital, machineries and 
equipments are imported from foreign countries through transport alone. 
MEANS OF TRANSPORT 
 
 
 
 
INDIAN TRANSPORTATION SYSTEM 
ROAD TRANSPORT   
OBJECTIVES 
Increasing the coverage and quality of roads and highways is critical to 
enhancing connectivity and internal and external trade. 
By 2022-23, we should achieve the following objectives:  
Increase connectivity by expanding the road network:  
Achieve the Bharatmala Phase-I target by completing 24,800 km by 2021-
22, including 2,000 km of coastal and port connectivity roads. 
Complete Phase I of the Pradhan Mantri Gram Sadak Yojana (PMGSY) 
with quality monitoring at every stage.  
Double the length of national highways (NHs) to 2 lakh km by 2022-23 
from the existing 1.22 lakh km.  
Widen single/intermediate lane (SL/IL) NHs and reduce the length of SL/IL 
NHs to less than 10 per cent of total length by 2022-23 from the present 26.46 
per cent. 
Improve the regulatory framework for roads to achieve better compliance, 
seamless connectivity, road safety and quality.  
As a signatory to the Brasilia Declaration, reduce the number of road 
accidents and fatalities by 50 per cent by 2020. 
CONSTRAINTS 
1. Capacity of existing highways: The existing length of the NH network is 
1.22 lakh km, which is 2.2 per cent of the country’s total road network of 
56.03 lakh km.5 The existing NH length with 4-lane and above NH 
standards is 27,658 km (22.59 per cent), and that with single/intermediate 
lane (SL/IL) width is 32,395 km (26.46 per cent); the remaining 62,379 km 
(50.95 per cent) is of 2-lane NH standard. Further, national and state 
highways are already overstrained, carrying more than 65 per cent of the 
 
road traffic. National highways carry 40 per cent of India’s total road 
traffic. 
2. Maintenance of existing infrastructure: The annual outlay earmarked for 
maintenance and repair of national highway stretches8 is only about 40 per 
cent of the funds required. This is one of the main reasons for the inability 
to take up timely maintenance interventions.  
3. Accidents and safety concerns: Road safety is a major issue in the country 
with nearly 400 road related deaths being recorded daily. In 2013, India had 
an accident death rate of 18.9 for every 100,000 people, higher than other 
South Asian countries such as Bangladesh (11.6), Mauritius (12.2) and Sri 
Lanka (13.7).9 At least a part of the fatalities is because of the poor quality 
of roads.  
4. Cost escalation for roads: Delays in acquiring land can affect project costs 
as the average cost of land has escalated from Rs. 0.80 crore per hectare 
during 2012-13 to Rs. 3.20 crore per hectare during 2017-18. 
WAY FORWARD: 
1. Increase connectivity by expanding the road network • Four projects 
to be undertaken: o Bharatmala Pariyojana Phase-I: complete 24,800-
km by 2021-22.10 o Special Accelerated Road Development 
Programme for the North-Eastern region (SARDP-NE), Phase ‘A’: 
improve about 4,099 km in the North-East. o ‘North-East Road 
Network Connectivity Project Phase I’: improve infrastructure in 
Meghalaya and Mizoram and enhance connectivity with inter-state roads 
and international borders o Chardham Mahamarg Vikas Pariyojna. • 
Improve the implementation capacity of states’/ UTs’ public work 
departments (PWDs) through institutional strengthening and 
training. A dedicated Metropolitan Urban Transport Authority in 
each city with a population of more than 1 million by 2022-23 is needed. 
o Similarly, set up dedicated cells for integrated planning, 
coordination and delivery of transport services in smaller cities. 
2. Improve road maintenance and safety • Maintain NH assets by 
adopting a maintenance management system (MMS). Earmark funds 
from the Central Road Fund (CRF) for maintenance activities. India 
 
should begin with earmarking 10 per cent of its annual budget for road 
and highways for maintenance to move towards the developed country 
norm of earmarking 40 per cent to 50 per cent of the budget for roads and 
highways for maintenance. • Build in heavy penalties on contractors for 
poor quality of operations and maintenance (O&M) into contracts 
across all contract modes. • Eliminate 789 black spots identified by the 
Ministry of Road Transport and Highways (MORTH) by March 2020 by 
constructing permanent structures such as flyovers/vehicular underpasses 
(VUPs) and pedestrian underpasses (PUPs). Of these spots, 136 are on 
state roads and need to be dealt with by state governments. • Constitute a 
National Safety Board to enforce road safety rules. 
3. Streamline land acquisition • Ensure that MORTH’s Bhoomi Rashi 
web portal, which is integrated with the Ministry of Finance’s Public 
Financial Management System (PFMS), is fully functional. • Sensitize 
stakeholders to iron out details of land acquisitions like determining 
market value, deciding a compensation amount, disbursement of 
compensation, etc., as detailed in the 2017 guidelines issued by 
MORTH, which covered various aspects of the Right to Fair 
Compensation and Transparency in Land Acquisition, Rehabilitation 
& Resettlement (RFCTLARR) Act, 2013, and The National 
Highways Act, 1956. 
4. Skill development • Introduce vocational training courses on road 
construction in Industrial Training Institutes (ITIs). • Collaborate 
with original equipment manufacturers and other stakeholders to set 
up driving training centres (DTCs) to train commercial vehicle 
drivers. • Ensure stringent testing of driving skills before granting driving 
licences by adopting technologically advanced methods such as the 
automated driving testing system. • MORTH has targeted training more 
than one lakh workers employed in various projects . 
5. Increase emphasis on research and development • Earmark 0.1 per 
cent of MORTH’s annual budget for R&D. • Establish a transport data 
centre at the national level for applied research on roads. • Enhance R&D 
on IT-enabled traffic management systems. • Develop new 
materials/techniques for construction. • Periodically revise 
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