india to invest in more roads
News Posted On: 10 December 2009
India, like fellow BRIC economies China and Brazil, is fast expanding, and the transport infrastucture in that country is undergoing a much needed massive upgrade with more to come. This can only help the real estate market as transport links are high on home and factory buyers agendas.
India has the second largest road network in the world, with a total of 3.4 million km of which 70,000 km comprises the national highway network – India's equivalent of motorways. But this is still way behind current needs according to road hauliers, who constantly complain about potholes and the quality of roads in general. Most of the highway network is just two-lane, and not all roads are made of smooth concrete. The many paved roads are tough on suspension and ride, less fuel efficient ,and speed limiting.
"We have the best trucks, the most advanced technologies, but what is the use when our roads are so bad?" complained Ashwin Agarwal, who owns a haulage fleet of more than 80 trucks.
"I can never accurately say when the trucks will reach. Invariably, there are delays because our roads are so bad. We need better roads, better infrastructure, it's the need of the hour," he said.
India is currently already overhauling congested ports and airports, and building more power generating capacity. However road construction has been lagging due to red tape, lack of funds and land acquisition problems.
Now however after years of neglect Asia's third-largest economy intends to start building an impressive 20 km (12 miles) of new road every day.
Poor roads have put off some investors in a country where road transport accounts for 70 percent of freight and passengers. The World Bank said poor infrastructure is inhibiting India's growth, and has agreed to part-fund 375,000 km new rural roads to be built by 2010. At the same time a similar mileage (or should that be kilometerage?) are to undergo upgrading.
Analysts estimate infrastructure upgrades alone could add a further 1 - 2 percentage points to India's GDP.
Ashok Kumar, senior highways engineer of the World Bank in India saw household incomes up by half or even doubled, crop yields nearly tripled, and literacy rates improved by better village and regional road links, indicative of just how much India could benefit from this new road-building drive.
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