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Sector Overview

The development of the Transport Infrastructure in India across various areas such as roads, railways and ports has gained tremendous pace in the last few years. The Transport sector in India is expected to grow at a compounded annual growth rate of 5.9 per cent, thereby becoming the fastest growing area of the country’s entire infrastructure sector.

In order to create a world class infrastructure, the government has laid significant emphasis on expanding and developing the sector across the country through several initiatives like the Bharatmala project, electrification of railway tracks, focus on high-speed trains, the Sagarmala programme and by actively working on e-mobility solutions for clean and cost-effective mobility of the population.

In addition, the key focus has been on enhancing the intermodal transport connectivity as well as the logistics infrastructure in the country through an effective and valuable public-private partnership (PPP). The private sector has also made a remarkable contribution to the sector by undertaking many projects for the development of infrastructure as well as catering to the financial need of the sector.

The road sector has attracted private investments with new measures like the Hybrid Annuity Model (HAM), Toll-Operate-Transfer (TOT) model, improved land acquisition process, the launch of masala bonds and Infrastructure Investment Trusts (InvITs) besides other initiatives. The Indian Railways has gained traction with investment potential in areas such as elevated rail corridor in Mumbai, some parts of dedicated freight corridor, freight terminals, redevelopment of stations and power generation/energy saving projects. The introduction of Sagarmala programme, Major Port Authorities Bill, 2016 and the ‘Landlord port’ model have all been instrumental in giving a boost to the Ports & Shipping sector.

The government is also working in tandem with various automobile companies and relevant policy stakeholders to achieve the target of selling only electric-vehicles by 2030 and has identified key areas related to transport mobility where significant policy reforms can be initiated.

A system of smart Transport infrastructure is imperative for connecting and spurring economic growth in our country. Several opportunities are available in areas like roads and highways, fast-speed trains, development of ports and multi modal hubs where private investments and policy initiatives can play an extremely important role in providing a world class infrastructure in the country.

FICCI's Engagement

India’s transport network is one of the most extensive in the world and the sector contributes significantly to the overall GDP of the country. The Government of India has recognized the challenges faced by the sector and has therefore taken several initiatives like the Bharatmala project in the Road sector, Sagarmala programme in the Ports & Shipping sector, focus on E-mobility, electrification of railway tracks and construction of multi-modal logistics parks for the development and promotion of the sector.

With a view to create a platform for all the stakeholders and for the conducive growth & development of the sector (Ports & Shipping, Roads & Highways, Civil Aviation and Railways), the Transport Infrastructure Division of FICCI works with the Central and State Governments, National & International development organizations like World Bank, Asian Development Bank, Japan International Cooperation Agency (JICA) and various other stakeholders to enhance efficiency and global competitiveness of the Indian transport infrastructure sector.

The Transport Infrastructure division discusses policy, regulatory and procedural issues with its members and industry experts for recommending appropriate reforms to the government for the development of the sector. For a conducive business environment, the division highlights encumbrances being faced by the industry players in the process of development of the sector and interacts with various national / international agencies for making feasible measures to overcome those encumbrances.

FICCI Transport Infrastructure Division supports the Government in its efforts towards projecting the infrastructure development. It act as a reference point for investors (domestic & international) interested in the sector and disseminates information related to government guidelines, investment opportunities, government & development agencies (which are involved in the development process of the sector).

For the promotion of the sector, the transport infrastructure division of FICCI works proactively to suggest necessary steps during the process of policy formation, budgetary allocation and forming of legal framework by the government. To maintain smooth progress, the division also advices the government to make essential provision for timely upgradation of the policies on the basis of regular feedback from its members and industry players.

The Division organizes several investment promotion programmes, conferences, seminars and workshops on a regular basis for facilitating interaction between various government agencies, international bodies, industry players and its members to provide a platform for raising issues pertaining to the sector, exchange of ideas and for exploring business opportunities among the varied stakeholders of the transport infrastructure sector. The division also collaborates with various consultancies and think-tanks for preparing knowledge reports focusing on the crucial areas of various sectors under transport infrastructure. Such initiatives help in analyzing the present trends in the scetor and identify ways to circumvent the challenges in the sector.