Road Transport
NATIONAL ROAD TRANSPORT POLICY Introduction
1.1 Road transport is vital to economic development, trade and social integration, which rely on the conveyance of both people and goods. Reduction in transport costs promote specialization, extend markets and thereby enable exploitation of the economies of scale. Global competition has made the existence of efficient transport and logistic systems in delivery chain an absolute imperative. Easy accessibility, flexibility of operations, door-to-door service and reliability have earned road transport an increasingly higher share of both passenger and freight traffic vis-à-vis other transport modes. Road transport has emerged as the dominant segment in India’s transportation sector with a share of 4.5 per cent in India’s GDP in 2005-06. Over the last six years (2000-01 to 2005-06), the annual average growth in road transport sector GDP at 9.5 per cent was much higher than the overall GDP growth of 6.5 per cent. Robust growth in road transport has been attained despite significant barriers to inter-State freight and passenger movement compared to inland waterways, railways and air which do not face rigorous enroute checks/barriers. 1.2 Transport demand in India has been growing rapidly. In recent years this demand has shifted among transport modes, mainly to the advantage of road transport, which carries about 87 percent and 61 per cent of passenger and freight transport demand arising for land based modes of transport (i.e. roadways and railways taken together) respectively. During 1992-93 to 2004-05 demand for road freight transport in India is estimated to have grown at an annual average rate of 6.7 percent, while GDP grew at an average of 6.2 percent. Road freight transport demand is expected to grow by around 10% per annum in the backdrop of a targeted annual GDP growth of 9% during the Eleventh Five Year Plan.
Motorization levels in India
2.1 Motor vehicle population has recorded significant growth over the years.
1.1 Road transport is vital to economic development, trade and social integration, which rely on the conveyance of both people and goods. Reduction in transport costs promote specialization, extend markets and thereby enable exploitation of the economies of scale. Global competition has made the existence of efficient transport and logistic systems in delivery chain an absolute imperative. Easy accessibility, flexibility of operations, door-to-door service and reliability have earned road transport an increasingly higher share of both passenger and freight traffic vis-à-vis other transport modes. Road transport has emerged as the dominant segment in India’s transportation sector with a share of 4.5 per cent in India’s GDP in 2005-06. Over the last six years (2000-01 to 2005-06), the annual average growth in road transport sector GDP at 9.5 per cent was much higher than the overall GDP growth of 6.5 per cent. Robust growth in road transport has been attained despite significant barriers to inter-State freight and passenger movement compared to inland waterways, railways and air which do not face rigorous enroute checks/barriers. 1.2 Transport demand in India has been growing rapidly. In recent years this demand has shifted among transport modes, mainly to the advantage of road transport, which carries about 87 percent and 61 per cent of passenger and freight transport demand arising for land based modes of transport (i.e. roadways and railways taken together) respectively. During 1992-93 to 2004-05 demand for road freight transport in India is estimated to have grown at an annual average rate of 6.7 percent, while GDP grew at an average of 6.2 percent. Road freight transport demand is expected to grow by around 10% per annum in the backdrop of a targeted annual GDP growth of 9% during the Eleventh Five Year Plan.
Motorization levels in India
2.1 Motor vehicle population has recorded significant growth over the years.