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From the time of Sher Shah Suri, the effectiveness of road transportation was very high which was further highlighted when Lord Dalhousie initiated railway transportation in India. While from Mauryans and Guptas, India knows the significance of water transportation. The same transportation provides backward and forward linkages to India’s industrial development.
As per Weber any industry can be located at least cost location and this is provided by good transportation network. For example, the location of iron and steel industry is always near to the location to the iron ore and coal. [Here, diagram of Weber’s industrial triangle is to be made]
In 21st century when India is moving towards $5 trillion economy, it is a prerequisite that India should work towards 10% industrial growth rate with 25% contribution in national GDP and it is possible only when we have efficient transportation. Road and other means of transportation are like the artery system of the body which provides blood and nutrition to the organs.
In recent years government came out with a comprehensive strategy of Bharatmala, Sagaramala, ro-ro services, even the construction of industrial corridors. [A diagram of Indian map showing, industrial corridor from Delhi to Mumbai, western DFC, Godavari waterway and various industrial clusters.]
Budget 2019 for 1st time gave the national waterway policy which talks of development of 111 waterways. Sagarmala talks of connectivity of minor ports and development of coastal economic zones. While National Highway Development Policy directed towards 4 and 6 laning of highways.
All these policies are targeted towards industrial development by providing benefits of:
1. Efficient backward and forward linkages
2. Decreasing transportation cost vis-a-vis inflation will decrease
3. Post-harvest management
4. It will control rural to urban migration.
5. Utilization of locally available labour and resources
6. Generation of good amount of GDP
Infrastructure development results in effective resource mobilization and there is a need that we should control incremental capital output ratio and time and cost overrun.
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