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Unit 19: Sectoral Performance II: Role of Infrastructure in Economic Development

agricultural, forest and mineral resources but they cannot be developed if they continue to be remote Notes
and inaccessible. By linking the backward regions with the relatively more advanced, transport
development helps in the better and fuller utilisation of resources. Finally, expansion of transport
facilities, in turn, helps industrialisation directly. The demand for locomotives, motor vehicles, ships
etc. leads to the start of industries which specialise in the production of these goods. Expansion of
transport is thus of fundamental importance for a developing country like India.
Transport and the Five Year Plans
Indian planners gave high priority to the development of transport, for in their opinion “an efficient
and well developed system of transport and communications is vital to the success of a plan of economic
development which lays stress on rapid industrialisation.” Accordingly, the allocation on the transport
sector was quite high during the first three plans, viz., between 25 and 28 per cent. The allocations in
the next successive Plans on the transport sector declined gradually. The Eighth Plan outlay, for
instance, was only 13 per cent of the total outlay. But the lower allocation in the last three plans does
not mean that the transport sector had been fully developed.
There is the resource crunch on the one side and there is increasing importance given to energy and
industrial sectors, on the other.
Growth of Transport System since 1951
Rail and road transport systems dominate but other forms of transport are also important within their
specialised areas considering the size of the country and its geographical features. Table 13 shows that
the transport sector has recorded a substantial growth since the introduction of economic planning in
1950-51. Railways have recorded a growth of 3 per cent per annum in freight originating tonnage,
though the growth in route length was indeed low. The road network has expanded at an annual rate
of 5 per cent while road transport fleet has increased by 7 per cent per annum in respect of goods
vehicles. About 70 per cent of the Indian villages have been connected by a net work of rural roads and
over 40 per cent of our villages are served by all weather roads. Shipping tonnage has increased by an
impressive 11 per cent while coastal shipping could register only a meagre rise of 1.4 per cent. Airlines
passenger traffic has risen smartly by 9 per cent per annum. The traffic handled by major ports has
increased from 19 million tonnes to 562.7 million tonnes between 1951 and 2010, at an annual rate of
over 5 per cent. The growth of the transport sector in general is indeed quite impressive and it reflects
the enormous outlay allocated to the development of the transport system during the planning period.
Problems of Transport Development in India
Since 1950-51 transport systems have registered impressive progress but there are many bottlenecks,
constraints and difficulties. Inadequacies and imbalances in transport threaten to constrain economic
growth and the quality of life in urban as well as rural India.
(a) Transport bottlenecks : The capacity of the entire transportation system including the road
network continues to fall short of demand for transportation. For instance, capacity constraints
in railways have led to the movement of bulk commodities like coal, over long distances, by
road, at high cost to the economy. The acute shortage of wagons had affected almost all industries
in the country. The scarcity of coal experienced throughout the country with enough coal at the
pit-heads, the piling up of stocks of cement with manufacturers but with the scarcity of cement
everywhere, scarcity of fertilisers and foodgrains, and so on, were often due to shortage of
railway facilities. The inefficiencies, the delays and the corruption prevalent in the railway staff
had driven manufacturers to make use of the services of road transporters for the movement of
their products. The railway bottlenecks have largely been now removed.
Even now 30 per cent of villages in our country still lack road connection. The road transport
system is under heavy strain, with inadequacy of capacity and sub-standard infrastructure.
This has led to excessive transit delays, fuel wastage and higher operating costs. Similar problems
are to be met with in the case of shipping also.

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