Transportation and Economic Development

Economic development is the creation of wealth from which the benefits for
the community are realized. It's more than a work program, it's an
investment to grow your economy and improve the prosperity and quality of
life for all residents.

To encourage economic growth, governments must invest in logistics

infrastructure such as roads, railways, airports and ports. In addition,
governments need public investments to respect the environment and
protect citizens' rights to clean air, decent places to live and work, as well as
basic human rights and equality. Businesses are not interested in these
issues because there is no incentive to make a profit. Governments in
different countries have different attitudes and priorities regarding the
attention they give to these issues. At each stage of the development of the
global economy, a particular transport technology has been developed or
adapted with a number of impacts. Business cycles are associated with a
variety of innovations, including transportation, which influence the
economic opportunities for production, distribution and consumption.

A government wants an efficient transport system because it allows easier

movement of labor from households to businesses, of goods and services
between businesses and from businesses to households. It also allows
workers to move easily from company to company and from business to
business, products and services to households. A low unemployment rate
shows that this is happening.

Supply is when growth is triggered by your actions. More transport and

logistics resources and investment in infrastructure by government and
business will create more capacity to generate products or services, which
will create more demand. Investing in infrastructure is a classic decision of
governments to improve the level of economic growth. More transport,
logistics and related infrastructure lead to economic development, Increase
in quality transport facilities leads to access to more markets and efficient
transport is cheaper, so more transport is used. Large-scale transport
infrastructure projects will indirectly affect the local economy; the multiplier
effect comes into play and encourages the growth of logistics companies.

The growth in demand is not so controllable. Investing in overall economic

development leads to demand for transportation, so demand comes from
consumers. The demand must first exist for the provision of transport
services to be worthwhile, while the growth offered is linked to the
expansion of transport and logistics capacities. The question can come from
two sources: the revealed question and the latent question. The question
revealed is based on the actual movements of goods i.e. people who want to
move more things.

The emergence of green logistics will be one of the key trends for future
growth. With India aiming for net zero emissions in all sectors, logistics
companies will need to reduce their carbon footprint and grow rapidly.
Digitization will also help in many ways. For example, India introduces GPS
tolling to ensure no fuel wasted and emissions free, resulting in hundreds of
tolls. Modern logistics parks are built with solar roofs and sell carbon-free
electricity instead of consuming it. E-commerce companies have committed
to providing 30% of shipments using electric vehicles.

NITHIN BALAKRISHNAN NAIR

MBA ITLM, IMU KOLKATA CAMPUS

REG. No. 2001305014