The Role of Road Transportation in the Development of the Indian Economy

Transport services is a vital component of the Indian economy. The role played by roadways in the development of this country cannot be denied. The economic importance of roadways can be easily understood when there are 27 states in India, each with its unique topography.

There are also several climatic conditions and diverse geography, which makes it necessary to have a strong roadway network connecting all corners of our country. Discussed below is how roads play an important role in the growth of the economy.

Road Network:

India has a road network of about 4.8 million kilometers, which is the largest in the world. It connects all major cities and towns and provides connectivity to remote villages. Roadways are the backbone of India’s transportation infrastructure.

Roads are vital for the national economy as they provide easy access to markets and reduce the cost of transporting goods from one place to another within a country or regionally across states or countries because it reduces fuel consumption when compared with other modes of transport such as railroads, airplanes, or ships.

Economic Importance of roadways:

Roadways are the most important mode of transport in India. They are the backbone of the Indian economy and the lifeline of the nation. A large number of goods, transport services and people move through roadways all over the country every day. Roadways are also a major source of employment and revenue generation for both Central/State Governments and private players.

In addition to economic benefits, online goods vehicle bookingschemes have social benefits, too, such as improved access to healthcare facilities, educational institutions, and infrastructure services through better connectivity between rural areas with urban centers via good-quality highways.

This results in a reduction in migration from rural areas towards cities during agricultural off-seasons due to improved conditions upon arrival at the destination (as compared to none), which reduces congestion on roads leading up to city centers.

This way, agricultural work can be done on time without any delays, which would otherwise have happened if these migrants were stuck on their way due to traffic jams caused by a lack of proper infrastructure planning.

Steps Taken by the Government for Improvement in Road Network

In order to improve road transportation, the Government of India has taken several initiatives. Online transport booking is a centrally sponsored online goods vehicle booking service launched by the Ministry of Road Transport and Highways (MoRTH) with an aim to enhance the connectivity of remote areas with highways.

Under this project, approximately 5,000 km of roads have been constructed or upgraded in Andhra Pradesh, Bihar, Jharkhand, and Odisha. The total cost incurred for these projects was about INR 910 crores or USD 140 million.

The National Highways Authority of India (NHAI) is an autonomous body established under Section 3(1)(b), read with Section 5(1) of the National Highway Act 1956.

These sections looks after implementation and management functions related to national highways, including allocation/assignment/delegation of works under construction/upgradation schemes in coordination with State Governments, etc., providing technical advice on matters about road construction such as system planning studies sectional alignments estimation work plans financial estimates preparation, etc.

It also manages disbursement through its own funds as well as through World Bank loans/credits to other multilateral agencies (ADB IFC etc.) where applicable; It provides technical goods transport services like supervision consultancy design studies feasibility reports etc., at both central & state levels.


In conclusion, a transport company is a vital component of the Indian economy. Roadways are the backbone of the Indian economy and play an important role in passenger and freight transport. They are used for both local and long-distance travel, with buses typically providing long-distance travel and trucks typically providing local transportation.

amit jain cardekho

Leave a Reply

Your email address will not be published. Required fields are marked *