India’s investment in inland transport infrastructure as a percentage of gross domestic product (GDP) is one of the lowest globally at 0.2 per cent, according to International Transport Federation (ITF) data.
This is despite India being the seventh largest country by area.
Developed countries, including those in Western Europe and the US, spend an average of 1 per cent of GDP on transport infrastructure, with countries such as Georgia even spending as high as 4.5 per cent.
Transport infrastructure, such as road, rail, inland waterways, is a catalyst of economic growth, as it enables movement of goods and people.
In fact, in 2009, investment in transport infrastructure by India was 0.9 per cent of GDP.
Even in the four preceding years – 2005-08 – India invested 0.8 per cent of GDP in inland transport infrastructure.
However, it is not clear if the ITF data includes both public and private investment.
Of late, the private sector in India has increasingly invested in transport infrastructure, particularly roads.
VOLUMES GROW
That said, India continued to see growth in inland transport volumes, while volumes either declined or stagnated in the developed economies, such as the European Union and OECD countries, ITF said in its latest report.
Road freight
Road freight in India and China continued to expand by 5 per cent and 18 per cent, respectively, over the three-year period (2008-11), while it continued to stagnate in the EU and OECD countries at below the 2009 world economic crisis levels, at times even shrinking by 4 per cent in the EU in 2012, according to ITF.
Rail freight
In China and Russia, rail freight continued to grow in 2011, hovering at 6-7 per cent levels.
Although rail freight grew by 3 per cent in OECD countries and the US, reaching pre-economic crisis levels, it stagnated in the EU and declined in the US in 2012, according to ITF’s early estimates.
While ITF has not recorded India’s rail freight growth 2011 onward, Indian Railways’ data shows that rail freight grew by 5.57 per cent in 2011-12 and 0.32 per cent in 2012-13.