INDIA’S INTERNAL TRADE

INFRASTRUCTURE

- NAME: Nikita Kishan Kumar Das.

APPLICATION NO.:211510003197.
INFRA-CELL ASSIGNMENT.
OVERVIEW OF INDIA’S INTERNAL TRADE
Waterways
• The government has also introduced various
fiscal and non-fiscal incentives for enterprises
that develop, maintain and operate ports, inland
waterways and shipbuilding in India.
• The GoI launched the ambitious Sagarmala
Programme with the vision of port-led
development and growth of logistics-intensive
industries. Under which, $123 bn would be
invested across 415 projects.
• 699.55 MT - Cargo traffic at major ports (2018-
2019).
• 2.9% - Cargo Traffic growth.
• 1451.2 MTPA - Capacity (2018).
• 1431 - Indian fleet strength (no. of vessels -
coastal & overseas as on Apr 2020).
Inland
Ports
• An inland port is a port on an inland waterway,
such as a river, lake, or canal, which may or may
not be connected to the sea. It is also called a
dry port, which is an inland intermodal terminal
directly connected by road or rail to a seaport,
operating as a center for the transshipment of
sea cargo to inland destinations.
• National highways are one of the common
modes through which such shipments are
possible.
• 36.4 Km - Avg. highway constructed per day in
FY 2020-21.
• 12,205 Km - National highway construction in FY
2020.
• 15% - Share of GDP on logistics &
transportation.
Railways
• The Indian rail network has 123,542 km of
total tracks over a 67,415 km route.
• Vision 2024 has been envisaged to achieve
targets of 2024 MT freight loading by 2024
• Indian Railways aims to electrify the entire
network by 2023 which will lead to annual
energy savings of $1.55 bn.
• The Indian railways successfully and
transported 1.23 billion tonnes of freight in
FY 2020-21 which is 1.93 % higher compared
to last year’s loading for the same period.
• 8 MT - Annual Estimated Freight Demand in
2031.
• $16 bn - Revenue from freight traffic (2021)
 INLAND PORTS AND WATERWAYS:

• India has 12 major ports with a coastline of more than 7,517 Kms long, interspersed with more than
INFRASTRUCTURE AND

200 ports which offers it a competitive advantage.

• The turnaround time at major ports stands at 2.5 days against a global average of 1-2 days.
ECONOMIC ACTIVITY

• The cargo handling capacity of major ports reached 1534.91 MPTA in 2019-20 .
• Maritime transport in India handles 95% of trade by Volume.
• Inland Waterways received a boost in the last five years. The Jal Vikas Marg on National Waterway1
will be completed. Further, the 890 Kms Dhubri-Sadiya connectivity will be done by 2022.

INTERNAL ROADWAYS:

• India has the second-largest road network in the world, spanning a total of 5.89 million kms. This
road network transports 64.5% of all goods in the country.
• The National highways with a length of 1,37,625 Kms, accounts for 2% of total road length, but carries
about 40% of total freight movement in the country.
• Despite the lockdown curbs, construction of National Highways hit an all-time high of 36.4 Kms /day.
• Under the Union Budget 2021-22, the Government of India has allocated Rs. 108,230 crore (US$
14.85 billion) to the Ministry of Road Transport and Highways.

INLAND RAILWAYS:-

• Indian Railways is among the world’s largest rail network, and its route length network is spread
over 67,956 kms, consisting of 8,479 freight trains carrying around 3 million tonnes (MT) of freight
daily from 7,349 stations. 
• In FY20-21, Indian Railways recorded the highest loading in freight transportation, of 119.79 MT.
With this, the freight revenue of Indian Railways also increased to Rs. 1,17,386 crore for the year
2020-21, as against Rs. 1,13,897 crore during fiscal 2019-20.
• Under the Union Budget 2021-2022, Rs 13.69 lakh crore has been allocated for railways with focus
on electrification of 27,000 railway tracks, building cold chain on the rail, more private trains and
solar power capacity to be set up alongside rail tracks.
MODE CHALLENGES
• Last mile connectivity to the ports is one of the major constraints
in smooth movement of cargo.
• A significant share of this cargo experiences “idle time” during its
transit.
• Cargo transportation in an organised manner is confined only to a
few waterways in Goa, West Bengal, Assam, and Kerala.
WATERWAYS • Higher lead distances from manufacturing units to ports.
• Roads are poorly maintained. Less than 0.1 % of the national
income is spent on the maintenance of roads in India, while in
Japan it is 3 % of the national income.
• 60% of villages are without roads in India. It adversely affects our
agriculture and rural economy.
• Highway traffic is heavily taxed. Tax bill on motor vehicles is Rs
3600. whereas it is Rs 860 in the U.S and Rs 470 in the U.K.
• High prices of petrol and diesel increase the operational costs of
ROADWAYS road transport, making the mode of transport more costly.
• Nearly 25% of the total railway tracks and 75-80% of machineries
in railway workshops in India is overaged and is due for
replacement.
• 44.17% of the bridges have outlived their lives.  Old bridges
include 339 important, 4,210 major and 51,629 minor bridges
built before 1920.
• Gauge conversion and signal upgrades are the major obstacles to
the strengthening of infrastructure.
RAILWAYS • The absence of modern automated signalling across the network.
SOLUTIONS
• The average turnaround time (TAT) globally stands at 1-2 days as
opposed to 2.5 days at major ports in India. Efficiency must be
increased and Idle time must be reduced.
• Dredging as well as infrastructure for IWT requires huge investments.
Govt. initiatives such as Sagarmala which calls for mobilization of
over $58 bn on infrastructure development and doubling share of
inland and coastal waterways in modal mix from 6% is a great sign.
• Timely and proper maintenance of roads and highways is essential to
minimise the time for travel and for a more comfortable drive.
Spending needs to increase.
• Focus must be on building roads in the rural areas and connecting it
with main routes.
• The heavy taxes collected at Highway toll plazas must be monitored
and reduced.
• There is little co-operation and co- ordination among different states
with regard to motor transport. The states should pursue a co-
ordinate policy in this matter.
• Obsolescence of railway tracks and coaches is a major safety issue
and must be looked at keenly.
• Modernisation is crucial. Steps like introduction of Train 18 (or Vande
Bharat express) is a step in right dirction.
• Electrification of broad gauge rail network , of which 71% is already
electrified, is a great measure. A uni-gauge system must be
implemented.
• The commissioning of the Dedicated Freight Corridor by 2021 can be
seen as a long-term solution to the network’s existing problems
arising from speed differentials.
Waterways are the most environmental friendly option with best capabilities in carrying larger volume of goods, and is also the most economical.
Railroads are the most efficient form of land transportation, one train can haul the equivalent of over 400 trucks. It is the most cost effective solution for land transportation for distances more
than 500 miles. It also helps reducing traffic congestion.
Roadways include local, over border, long or short haul deliveries even in rural areas. It offers flexible service with complete door-to-door service and is one of the more economical means of
transport; all the modes have their advantaged but disadvantages/challenges as well.
So, Depending on point of origin, point of delivery, and timeframe required, many logistics companies may suggest multimodal solutions for delivering your goods. Despite using more than
one mode of transportation, this can often offer a cost effective solution to customers.

GROWTH DRIVERS AND FUTURE SCOPE:-

• SAGARMALA INITIATIVE- 6 new ports identified under
Sagarmala Programme.
• ATMANIRBHAR BHARAT ABHIYAAN- Self Reliant India-
Special economic and comprehensive package of INR 20
lakh crores towards promoting manufacturing in India.
• CONTAINER MANUFACTURING- Bhavnagar in Gujarat is
being developed as a container manufacturing hub.
• MASSIVE INFRASTRUCTURE PUSH- $1.4 Tn to be
invested for infrastructure from 2020-25.
• GROWING DEMAND- Production of all vehicle
segments reached 26 million.
• NATIONAL HIGHWAYS EXPANSION- Length of
national highways to reach 200,000 km.
• ATMANIRBHAR BHARAT ABHIYAAN- Self Reliant
India- Special economic and comprehensive
package of INR 20 lakh crores towards promoting
manufacturing in India.
• DEDICATED FREIGHT CORRIDOR- Six high-capacity,
high-speed dedicated freight corridors

• RISING TRADE- Increased trade & private participation in
port infra development.
• CRUISE SHIPPING- Cruise shipping potential expected to
grow.
• SPECIALIST TERMINAL BASED PORTS- Cargo like LNG
with specific equipment & high capital costs
• POLICY SUPPORT- Standardized process for bidding • FREIGHT BUSINESS DEEVLOPMENT PORTAL- One-
and tolling. stop cargo solution for seamless goods
transportation.
• DIAMOND QUADRILATERAL NETWORK-
Connecting major metros and growth centers of
the country for high-speed rail.
 THANK
YOU
BIBLIOGRAPHY:-
1) www.globalrailwayreview.com
2) Ibef.org
3) www.investindia.gov.in
4) www.researchgate.net
5) iwai.nic.in
6) indianrailways.gov.in
7) shipmin.gov.in