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.
- 22 Maritime Ports/Agencies/Authorities signed 486 Memorandums of Understanding (MOUs) for Maritime India Summit, 2021 totaling USD 47.02 billion across various subsectors.
With a total length of 62.16 lakh kilometers, India possesses the world’s second-largest road network. In FY 2020-21, National Highways/Expressways cover 1,36,440 km, State Highways cover 1,76,818 km, and Other Roads cover 59,02,539 km.
According to DPIIT directives on public procurement, more least 95 per cent of electric locomotive components must be sourced domestically under the MAKE IN INDIA policy.
The Northeast Special Accelerated Road Development Program (SARDP-NE) aims to improve road connection between remote northeastern areas and state capitals and district offices.
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 signed an MoU (Memorandum of Understanding) in October 2021 for a proposed US$ 3.15 billion railway line project connecting Kathmandu and Raxaul, India’s border town.
- By 2022, the government plans to build 65,000 kilometers of national highways for a total cost of US$ 741.51 billion.
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.
How we can help you:
– Product-Pricing analysis
– Strategies for – product/service localization
– Market research to sell effectively
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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