TRANSPORT AND INDIAN

ECONOMIC DEVLOPMENT

S.NO INDEX
1 OBJECTIVE
2 INTRODUCTION
3 ANALYSIS AND INTERPRETATION
4 FINDIND AND CONCLUSION
a DE LIMITATIONS
b BIBLOGRAP
OBJECTIVE ; HOW TRANSPORT LEAD TO ECONOMIC
DEVELOPMENT

METHOD OF STUDY: second data is used for

completing project work

LIMITATION : 1 .the study induces only how

transportation lead to economic development
2.the study area is our own nation india

INRODUCTION -1
MEANING: In a microeconomic sense, transportation involves
relations between firms and individual consumers. The demand for
and supply of transportation for both passengers and freight,
transportation pricing, and the reasons why the transportation system
is both regulated and deregulated are among its concerns
The development of transportation systems is embedded within
the scale and context in which they take place, from the local to
the global and from environmental, historical, technological, and
economic perspectives
THE TRANSPORT SYSTEM INCLUDES:
1 DEMAND: Transport demand is about the movement of people
 and goods and we travel in order to satisfy a need (work, education,
recreation etc) and we transport goods as part of the overall
economic activity.

2 NODES: seaports, inland terminals, airports, highways, and

railroads are hubs in a multimodal transportation network that
facilitate the smooth operation of passengers and freight

3 NETWORK: Transportation links together the factors of

production in a complex web of relationships between
producers and consumers
4 LOCATION : Transportation links together the factors
of production in a complex web of relationships
between producers and consumers
5 INFRASTRUCTURE: the physical components and networks
that enable the movement of people, goods, and services in a
society

ROLE OF TRANSPORTATION IN DAILY

LIFE

Transportation plays a pivotal role in our daily lives, acting as

the lifeline that connects individuals to their jobs, education,
healthcare, and leisure activities, essentially enabling the
smooth functioning of modern society; without it, accessing
basic necessities, participating in social events, or even simply
getting to work would be significantly hindered. From the
moment we wake up and commute to work via public transit or
personal vehicles, to running errands for groceries or dropping
 off children at school, transportation is an integral part of our
routines, allowing us to navigate our surroundings and engage
with the world around us. Moreover, the accessibility and
efficiency of transportation systems directly impact economic
growth, facilitating the movement of goods and services,
fostering trade, and enabling businesses to operate effectively
across different regions. Beyond its practical functions,
transportation also plays a significant role in social interaction,
allowing people to connect with friends and family, explore
new places, and participate in cultural events, thus contributing
to a richer quality of life.

FEATURES OF TRASPORTATION

Transportation refers to the movement of people

,goods and service from one place to another.
Here are the features of transportation with sub-heads and
explanations:
1. Speed
* Transportation modes can vary in speed, ranging from slow-
moving modes like bicycles or pedestrians to high-speed modes
like airplanes or bullet trains.
* Faster transportation modes enable faster movement of people
and goods, reducing travel time and increasing efficiency.
2. Capacity
* Transportation modes have varying capacities, measured in
terms of the number of passengers or tons of goods that can be
carried.
* Larger transportation modes, like ships or cargo planes, can
carry more volume and weight than smaller ones, like cars or
bicycles.
3. Flexibility
* Transportation modes differ in their flexibility, with some
allowing for more flexibility in route planning, scheduling, or mode
choice.
* For example, cars can be driven on various routes and
schedules, while buses follow fixed routes and schedules.
4. Comfort
* Transportation modes vary in terms of comfort, with some
providing more comfort and amenities than others.
* For example, first-class airline seats offer more comfort and
amenities than economy seats.
5. Safety
* Transportation modes differ in terms of safety, with some
having a higher risk of accidents or injuries than others.
* For example, driving a car can be safer than riding a bicycle in
heavy traffic.
6. Environmental Impact
* Transportation modes have varying environmental impacts, with
some producing more emissions or noise pollution than others.
* For example, electric vehicles produce zero emissions, while
fossil fuel-powered vehicles emit greenhouse gases.
7. Cost
* Transportation modes differ in terms of cost, with some being
more expensive than others.
* For example, flying is often more expensive than taking the train
or bus.

IMPORTANCE OF TRASPORTATION :
Transportation plays a vital role in the development of a country
and its economy. It is essential for the movement of goods,
services, and people from one place to another. Without
transportation, economic growth, social progress, and
environmental sustainability would be severely impacted. The
importance of transportation can be seen in the following ways:
* Facilitates trade and commerce: Transportation allows for the
movement of goods and services, enabling businesses to operate
efficiently and effectively.
* Supports economic growth: Transportation infrastructure is a
key driver of economic growth, creating jobs and stimulating
economic activity.
* Enhances social mobility: Transportation provides access to
education, healthcare, and employment opportunities, improving
the quality of life for individuals.
* Reduces congestion: Efficient transportation systems reduce
congestion, pollution, and traffic accidents, making cities more
livable.
Overall, transportation is crucial for the well-being of individuals,
businesses, and society as a whole. It enables the movement of
people, goods, and services, and has a significant impact on the
economy, environment, and society.
MODES OF TRASPORT;
Modes of Transport have played a significant role in economic
development by improving connectivitiy and facilitatinthe
movement of goods and people. There are some ways in which
different Modes of Transportation have contributed to economic
development:-
1 RAILWAYS; Railway transport moves people and goods via
trains on rail tracks, offering efficiency, reduced congestion, and
lower emissions. Ideal for heavy freight and long-distance travel,
trains connect cities and rural areas. Advancements include high-
speed trains, electrification, and digital signaling, enhancing
safety and efficiency in this widely used transportation mode.
2 ROADWAYS;
Road transport gives a connection between all the other means of
transport. Roads can provide connectivity in all relief areas which
is practically not possible for railways. Roadways also provide
links between railway stations and airports
3 AIR TRANSPORTATION;
Airway transport, or air travel, swiftly moves people and goods via
aircraft, connecting global destinations. Benefits include speed,
convenience, and accessibility to remote areas. Commercial
airlines, cargo planes, and helicopters provide various services.
Advances in technology improve safety, efficiency, and comfort,
making air travel a vital component of global connectivity.
4 WATER TRANSPORT:-
Water transport is and efficient mode of transportation for bulk
goods, especially for International Trade. Ports and harbor have
played a vital role in facilitating trade and commerce, leading to
economic development.
TRANSPORTATION BEFORE INDEPENDENCE:
During the British rule in India, Transportation was mainly
controlled by
British East India company. They built railways, roads, and ports
for their
Own benefit, to transport raw materials and goods from India to
British / Britain.
1 RAILWAYS:
During the British period in India, railway transport was a
significant mode of transportation. The first railway in India was
launched in 1853 by the British East India Company, and by 1900,
the Indian Railways Network had expanded to over 30,000 km.
The railways played a crucial role in connecting major cities,
facilitating trade, and contributing to economic
2 ROADWAYS:
During the British period in India, roadway transport was primarily
horse-drawn carriages, carts, and tongas. The introduction of
motor vehicles in the late 19th century improved mobility, but
roads were largely unpaved and in poor condition. The Indian
Railways network, established in the 1850s, remained the primary
mode of long-distance transport.
AT THE TIME OF INDEPENDENCE:-
The partition of India in 1947 led to the displacement of millions
of people, causing huge demand for Transportation. Trains and
buseswere used to Transport refuges to their respective
destination.
1 RAILWAYS;
India had a vast railway network of over 60,000 km, with a mix of
broad gauge , metre gauge), and narrow gauge tracks. The
railways were primarily managed by the British Indian Railways,
with Indian Railways as the operating company. The network was
well-established, but had limited capacity and infrastructure,
which was inherited by the newly independent Indian government.
2 ROADWAYS;
Roadways transport was limited, with a network of approximately
335,000 kilometers of roads, mostly unpaved and in poor
condition. Buses and trucks were the primary mode of
transportation, while bicycles and bullock carts were also
common.
3 AIRWAYS:
Airways transport was limited, with only a few domestic airlines
operating in the country. The Indian Airlines (now Air India) was
established in 1953, and international air travel was limited to a
few routes.
AFTER INDEPENDENCE;
1 RAILWAYS; The Indian Railways, a public sector undertaking,
maintained its existing network and expanded it gradually. The
government invested in modernization, introducing new trains,
locomotives, and signaling systems. The Railways also played a
crucial role in catering to the country's growing industrial and
economic needs, connecting major cities and towns. However,
the system faced challenges such as inadequate infrastructure,
overcrowding, and aging equipment, which hindered its growth
and efficiency

2 ROADWAYS; roadways transportation was primarily

dominated by horse-drawn carts and buses. In the 1950s and
1960s, the introduction of trucks, taxis, and autorickshaws
improved connectivity. The 1980s saw the emergence of private
bus operators and the introduction of buses with better amenities.
In the 1990s and 2000s, India's road network expanded
significantly, with the construction of new highways and the
introduction of air-conditioned buses. Today, India has a vast
network of roads, with a mix of government-owned and private
buses, autos, taxis, and ride-hailing services
3 AIRTRANSPORTATION; the country's airways
transportation was limited and largely reliant on foreign airlines.
The Indian government established Indian Airlines in 1953 to
promote domestic air travel. In the 1970s and 1980s, Indian
Airlines and Air India, the national carrier, expanded their routes
and fleet. The deregulation of the Indian civil aviation industry in
1994 led to the entry of private carriers like Jet Airways, IndiGo,
and SpiceJet. Today, India has a thriving aviation industry with
multiple airlines operating both domestic and international flights.

TRANSPORT SYSTEM AND ECONOMIC

DEVELOPMENT:-
The Transport System and Economic Development are tighly
coupled with each other. A well-knit transport System that is well
-coordinated Contributed to the sustained growth of any
country. One can say that it is the transport routes that
govern the basic asteries of the economic system of a
country.
It is the link between production and consumption;
hence a transport system can also be deemed as the
controller of the economy. A country is progressing if
there is transport moving in and out ,which leads to the
development of the economy .
 If product is produced at a place it is necessary for the
producer to make that product to reach its consumer. For
that this reach its consumer. For that this Transport
system will work. Let’s take an example: If you have
ordered anything online from an app, your producer will
produce the product and this app will have its own
devlivery people who will transport your product to your
doorstep, This provides them with the money. Thus, it will
increase the economic growth of the country and
transportation contributes 5.5% in GDP in recent years.

THE ECONOMIC IMPORTANCE OF THE TRANSPORT

SYSTEM IN INDIA:-
In a country like India, which the size of a continent, the
importance of efficient, dependable, affordable, and safe
transport facilities is very high. The commercial markets in India
and the economic resources are dotted across the length and
breadth of the nation. Below are Mentioned some of the
important roles that the transport system plays in the economic
development of India. >Moving
Inputs and outputs
>Mobilizes Labour
>Enhances Specialisations.
>Opening Inaccessible Regious
>Enriding the outlook of people.

CHALLENGES FACED BY TRANSPORTATION IN

ECONOMIC DEVELOPMENT:-
 There have been several challenges faced by transportation in
economic Development, inclucing:-
>Lack of Investment.
>poor infrastructure.
>congestion
> Inefficient transport modes.
>Environment impact.

BENEFITS OF TRANSPORTATION WHICH HAS

CONTRIBUTED TO ECONOMIC DEVELOPMENT;
Despite the challenges , transportation has played a crucial role
in economic development. Some of the benefits of the
transportation included:
>Increased trade
>Improved access to markets
>Increased mobility
>Improved productivity
>Increased tourism

INITIATIVE TAKEN FOR TRANSPORT TO INCREASE

ECONOMIC GROWTH:-
1,Building new roads and highways.
2 Development public transport system.
3 Upgrading airports and ports.
4 Implementing smart Transport Technologies.
5 Encouraging alternative Modes of Transportation.
6 Investing in research and development.

2 ANALYSIS & INTERPRETATION

INDIAS STRAGEY OF TRANSPORTATION
1) PUBLIC TRANSPORT: India’s transportation strategy
is primarly focused on public transportation .The country has
a vast network of buses, trains and subways that connect
cities and towns.
2) TWO WHEELERS; - Two wheelers are a popular mode
of transportation in india due to their affordability and ease
of use. Motorcycle and scootors are preving in urban areas.
3) RAILWAYS ;india has one of the largest railway networks in
the world ,with over 68000km of track.railway are essential
mode of transportation for both people and goods in india.
4) INFRASTRUCTURE DEVELOPMENT;- india is increasing
heavily in its transportation insfrastructure to improve
connectivity between cities and towns the government is
focusing on new hieghways, airports and railways to improve
transportation across the country.
In summary , india has pronies , when it comes to
transportation strategies in short india mainly focus on
 public transporation.

SHARES OF DIFFERENT MODES OF

TRANSPORT SERVICES IN GROSS VALUE
ADDED (GVA):-
As of 2023-24, the shares of different modes of transport
in India’s Gross Value Added (GVA) are generally estimated as
follows:
1. **Road Transport**: Approximately 60-65% of the transport
sector's GVA. This includes freight and passenger services.
2. **Rail Transport**: Around 20-25%. Indian Railways continues
to be a major player in freight and passenger movement.
3. **Air Transport**: About 7-10%. This sector has seen growth,
especially in domestic travel post-pandemic.
4. **Water Transport**: Approximately 3-5%, reflecting its role in
freight and shipping.
Overall, these figures underscore the diverse transport landscape in India
and the varying contributions of each mode to the economy. Continuous
investments in infrastructure, policy reforms, and technology integration
will be vital for enhancing the efficiency and sustainability of the transport
sector, ultimately driving economic growth and improving connectivity
across the nation.
THE local government expenditure on India in 2010
and 2015:
The chart shows the percentage breakdown of government
spending across nine categories in 2010 and 2015. Over the five-
years period, there were significant change in expenditure.
In both years, the four largest areas of government expenditure
were:
Education, healthcare, pensions and defence, with education
taking the largest share (24% in 2010 21% in 2015). The smallest
areas of expenditure were transport, culture and “other”. Interest
on borrowing and spending on welfare lay in between.
The expenditure on transport in 2010 was around 3% and 2015
was around 1%
Hence we can notice that there is decline in the expenditure of
transport from 3% to 1%, which ultimately Increases the GDP.
Therefore,
Decline in expenditure of the transport, Indirectly
increase the GDP .
TRENDS IN PUBLIC TRANSPORT:
India's trending public transportation systems are focused
on sustainability and efficiency. Metro Rail Systems are becoming
increasingly popular, with many cities investing heavily in
expanding their networks .
Metro Rail Systems are a crucial part of India's public
transportation network, providing efficient, reliable, and eco-
friendly travel options. Some key statistics:
 Over 750 km of metro lines operational in 18 cities ¹.
 Daily ridership exceeds 7 million passengers ¹.
  Expansions planned in cities like Delhi, Bengaluru, Mumbai,
and Kolkata.
 Government aims for 50% of urban trips to be on public
transport by 2030.
Metro Rail Systems enhance connectivity, reduce congestion, and
promote sustainable urban development.
OPERATIONG EXPENSES OF SELECTED CTIES IN
INDIA (2000-2001)
Since the mid-1990’s, operation deficits have been rising
rapidly. For bus systems in the largest cities, the combined
operating it deficit Quadrupled , and for Indian Railways , the
annual operating deficit tripled. Most publicly owned bus system
in large cities generally about 70 to 90% of operating costs,
much higher than large public transport system in western Europe.
The most unprofitable bus system is in Kolkata, which covers only
42% of costs through passenger fames, while Delhi (72%) and
Mumbai (80%) covers about three-fourths of costs. At the high
and of the scale, Bangalore (105%) is actually profitable, and
Hyderabad (92%) almost breaks even. It is notable that bosth of
the publicity owned bus time in Bangalore and Hyderabad
contract many of their services to privately operated companies,
which probably explains the better economic performance.
 3 FINDINGS AND
COCLUSION

Based on the world Bank’s Data, transportation and storage

services play a significant role in contributing to global GDP.
However, it is important to note that the relations between
transportation and economic development is complex and
multifaceted.
From table: 1 AND CHART 1:-
We come to know that the percentage shares of different
mode of transport services in GVA between the years 2011-12
and 2018-19 is falling gradually.
Years 2014-15 the contributing of transport to GVA was 4.99%,
it fell to 4.63% during the year 2018-19.
From the chart 2:
We come to know that the expenditure spent by government
in “transport sector” of the year 2010 to 2015 falling
tremendously.
Year 2010 the total transport sector contributed 5% and in the
year 2015 it contributed around 1%. Due to Decrease in
expenditure, it Indirectly Increase the GPD of India.
FROM TABLE 2:
We come across the trends in public transport that is rail
usage has been sharply increasing over past 5 decades and this
directly increase
The GDP (around 28%)

FROM TABLE 3:
Operating deficits in 2000-2001 have been rising rapidly. The
contribution of different state differs in GDP but overall in
Increase constantly,
Hence from all the four graphs (charts/tables ) we analysing that
the contribution of transport sector in economic development
shows a gradual increase and it indeed lead to economic
development.

LIMITATIONS:
 As a beginner:
I could find it a bit difficult collecting
the data, analysing and concluing
 Scope of Study:
The project focuses on a specific topic
or region, which may limit the applicability of the findings to other
contexts or populations.
 Time Constraints:
Limited time for the project may have
restricted the depth of research and analysis
 Resource Limitations:
Access to resources such as
books, articles, or expert opinions was limited, which could affect
the richness of the research.

BIBLIOGRAPHY:
 https://www.geeksforgeeks.org/transportation
transportation and economic development/.
 https://transportgeography.org/content/chapter3/
transportation and economic development/.
 www.worldbank.com.
 www.tnsta.gov.in
 https://morth.nic.in (Mistry of Road Transport and Highways)
 https://www.indiabuget.gov.in (India Budget)
 https://www.tnbudget.tn.gov.in (Tamil Nadu Government
Portal)
 https://www.mospi.gov.in (The Ministry of Statistics and
Programme)