road transport policy27333191

7/27/2019 Road Transport Policy27333191

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NATIONAL ROAD TRANSPORT POLICY

Introduction

1.1 Road transport is vital to economic development, trade and social integration,

which rely on the conveyance of both people and goods. Reduction in transport costs

promote specialization, extend markets and thereby enable exploitation of the

economies of scale. Global competition has made the existence of efficient transport

and logistic systems in delivery chain an absolute imperative. Easy accessibility,

flexibility of operations, door-to-door service and reliability have earned road transport

an increasingly higher share of both passenger and freight traffic vis--vis other

transport modes. Road transport has emerged as the dominant segment in Indias

transportation sector with a share of 4.5 per cent in Indias GDP in 2005-06. Over the

last six years (2000-01 to 2005-06), the annual average growth in road transportsector GDP at 9.5 per cent was much higher than the overall GDP growth of 6.5 per

cent. Robust growth in road transport has been attained despite significant barriers to

inter-State freight and passenger movement compared to inland waterways, railways

and air which do not face rigorous enroute checks/barriers.

1.2 Transport demand in India has been growing rapidly. In recent years this

demand has shifted among transport modes, mainly to the advantage of road

transport, which carries about 87 percent and 61 per cent of passenger and freight

transport demand arising for land based modes of transport (i.e. roadways andrailways taken together) respectively. During 1992-93 to 2004-05 demand for road

freight transport in India is estimated to have grown at an annual average rate of 6.7

percent, while GDP grew at an average of 6.2 percent. Road freight transport

demand is expected to grow by around 10% per annum in the backdrop of a targeted

annual GDP growth of 9% during the Eleventh Five Year Plan.

Motorization levels in India

2.1 Motor vehicle population has recorded significant growth over the years. India

had 72.7 million registered motor vehicles at the end of fiscal year 2003-04. The

growth of vehicular traffic on roads has been far greater than the growth of the

highways; as a result the main arteries face capacity saturation. Between 1951 and

2004 the vehicle population grew at a compound annual growth rate (CAGR) of close

to 11 per cent. Personalized mode (constituting mainly two wheelers and cars)

1


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