TRANSPORTATION SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Transportation Industry in India
Summary/Snapshot
- By 2024, Indian Railways wants to run entirely on electricity, and by 2030, it hopes to achieve a net-zero emission network.
- For FY 2019-25, the Indian government has set aside US$ 13.14 billion for the National Infrastructure Pipeline. Over the next five years, the road sector is estimated to account for 18 per cent of capital spending.
- The Sagarmala project identified 12 key ports for freight handling until 2035. The goal of this project is to encourage port-led growth and provide infrastructure for more efficient and cost-effective transportation of commodities to and from ports.
- The National Infrastructure Pipeline (NIP) has selected 58 projects worth USD 6.6 billion for infrastructure augmentation and development at major ports between now and 2025.
During the Global Maritime India Summit 2023, over 300 Memorandums of Understanding (MoUs) were signed, valued at approximately USD 72 billion across various subsectors.
India now has a total road network length of 66.71 lakh kilometers, maintaining its position as the world’s second-largest road network.
As of FY 2023-24, National Highways/Expressways cover 1,46,145 km, State Highways cover 1,79,535 km, and Other Roads cover 63,45,403 km.
According to the latest DPIIT directives, at least 95% of electric locomotive components must be sourced domestically under the MAKE IN INDIA policy.
The SARDP-NE continues to improve road connectivity in the northeastern region, with a focus on linking remote areas to state capitals and district offices. The program has completed 9,984 km of National Highways in the region over the past decade.
Growth Drivers
- To improve connectivity across the country, 100 per cent FDI in the road and highway sector is approved. FDI cap in the aviation sector is increased from 79 per cent to 100 per cent, with up to 49 per cent available under the automatic route.
- The need for a faster and more reliable method of transportation for the transfer of goods and people develops as the economy grows.
- The passenger segment is growing due to increasing urbanization. By 2050, India is expected to account for 40% of worldwide rail activity.
Sub industries
Air Equipment & Components
Cargo
Marine Equipment & Components
MRO for Airlines
Railway Equipment & Components
Railways
Road
Ship and Boatbuilding
Opportunities
- India and Nepal continue to collaborate on the proposed US$ 3.15 billion railway line project connecting Kathmandu and Raxaul. This project aims to enhance connectivity and trade between the two countries.
- The Indian government has set ambitious targets for the transportation sector, including the development of 2 lakh kilometers of national highways by 2025. This extensive network expansion is expected to significantly improve connectivity and boost economic growth.
- The government plans to develop 35 Multi-Modal Logistics Parks (MMLPs) by 2030. These parks will integrate various modes of transportation, streamline logistics, and reduce transportation costs.
- India is focusing on clean transportation solutions, including the adoption of electric vehicles (EVs) and the development of supporting infrastructure. The India Clean Transportation Summit 2024 highlighted the need for accelerating the adoption of electric trucks and local manufacturing to reduce costs and support sustainable growth.
Challenges
- For transportation providers, staying on top of bulk order timeframes is difficult to keep up with the supply-chain timetable.
- The cost of fuel is one of the most significant issues faced by transportation companies.
- Unreliable weather conditions increase the chance of unforeseen events.
- Retaining workers is a serious problem as they have they are overworked.
- Another significant issue is storage. It’s no news that India’s pitiful warehouse facilities are in bad shape. Pest-infested warehouses, damage from leaks, a lack of adequate storage space, and other factors cause significant harm to cargo.
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– Product-Pricing analysis
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Key Investment Opportunities
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Ports
- Inland waterways and inland water transportation development
- Projects to build ports and harbors
- Projects to maintain ports and harbors
Railway- Projects involving high-speed trains
- Dedicated freight lines are on the way.
- Manned and Unmanned level crossings: technological solutions
- Innovations in technology to increase safety and reduce accidents
Roads- Toll-Operate-Transfer Model: Through the Toll-Operate-Transfer (ToT) system, the Ministry can raise cash by monetizing road assets built with public funding. The program calls for packaged national roadways to be bid on for a 30-year concession period.
Recent Developments
- Record speed of highway construction
- Fast-paced development of dedicated freight corridors
- Development/ expansion of airports focused on cargo movement
- Expansion in ports infrastructure
Key Players in India
National
Rallis India Limited
Nuziveedu seeds limited
Advanta Limited
Poabs Organic Estates
National Agro Industries
Godrej Agrovet Limited
Rasi Seeds
Jain Irrigation Systems
International
BASF
Bayer AG
CNH Industrial
DowDuPont
Syngenta AG
Cargill
CLAAS
Deere & Company
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