Asian Journal of Research in Social Sciences and Humanities
Year : 2011, Volume : 1, Issue : 4
First page : ( 309) Last page : ( 319)
Online ISSN : 2249-7315.

Transport sector: Precursor for infrastructure and economic development of India

Jayanthi G.*, Assistant Professor, Lavanya V.L.**, Ph.D Research Scholar

*Department of Management Studies, Hindustan College of Arts and Science, Coimbatore.

**Department of Economics, Avinashilingam Institute of Home Science and Higher Education for Women, Coimbatore.

Online published on 3 January, 2012.

Abstract

Transport is clearly a factor of fundamental importance for all economic activities and the cost of the transport is significant variable affecting the market price of many commodity. In infrastructure development particularly transport sector is precursor for national economic development. Economic development of a region may be said to require a certain level of transport provision in order to maximize its development potential and theoretically, there is an optimum transport capacity for a given level of development. In developing countries, the lack of transportation infrastructures and regulatory impediments are jointlyimpactingeconomicdevelopment by conferring higher transport costs, but also delays rendering supply chain management unreliable. India's growing economy has witnessed a rise in demand for transport infrastructure and services. However, the sector has not been able to keep pace with rising demand and is proving to be a drag on the economy. The availability of adequate infrastructure facilities is imperative for the overall economic development of a country. Infrastructure adequacy helps to determine success in diversifying production, expanding trade, coping with population growth, reducing poverty and improving environmental conditions. Major improvements in the sector are required to support the country's continued economic growth and to reduce poverty.

Top