Transportation Industry in India - Analysis of Growth, Trends and Forecast (2020 - 2025)

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The relationship between economic growth and infrastructure investment is very evident. The faster the economy grows, more the need for faster and reliable mode for transport for movement of goods and people. High growth of Indian economy is driving the demand for transportation industry. The transportation industry is classified into majorly three segments i.e. aviation, roads and railways. India has a road network of 5.23 million kilometers and is expected to grow at a CAGR of XX.XX% in next five years. Present government’s high focus on infrastructure investment and friendly approach towards Private-Public Partnership (PPP) model gives room for private players in the industry. India has witnessed 112 completed road projects via Public –Private Partnership Model and 150 projects are being completed.

Transportation industry contributed roughly 6.3% of GDP and is majorly dominated by road sector. More than 50% of freight and 90% of passenger traffic are handled by road. Government as well private investments, rising exports, increasing interstate movement of goods and passengers, growing FMCG sector and rising disposable income are the major drivers of transpiration industry in India. In order to boost the connectivity across country, 100% FDI has been allowed in roads and Highway sector via automatic route. In case of aviation sector, government has increased the FDI limit from 79% to 100% of which up to 49% is available under automatic route.

As the growth in tier 1 and tier 2 cities are increasing, government is aiming to connect those to major growing major metro cities. New liberalization programs of FDI norms is expected to facilitate entry of new players and thereby encouraging competition in these markets. This will bring higher affordability especially in the aviation industry.

Major investment Opportunity Includes: PPP model for National Highway Development Projects, Special Accelerated Road Development Program for the North-eastern region (SARDP-NE), Logistics, Ground handling services, general aviation space and Railway Services like food catering.

What the report offers

The study identifies the situation of India and predicts the growth of its Transportation Industry. Report talks about growth, market trends, progress, challenges, opportunities, government regulations, technologies in use, growth forecast, major companies, upcoming companies and projects etc. in the Transportation sector of India. In addition to it, the report also explains economic conditions of and forecast of its current economic scenario and effect of its current policy changes in to its economy, reasons and implications on the growth of this sector. Lastly, the report is segmented by various forms of Transportation available in the country.

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