Analysing the impact of roadways and railways on the national economy

Analysing the impact of roadways and railways on the national economy

By Shivansh Sharda
10 Corbett
Shiv Nadar School, Noida
2024-25
Analysing the impact of roadways and railways on the national economy

Indian railways and roadways have always been a crucial part of how India as a country operates. The
network of roads and rail are far more than just a method for the citizens to get from point A to point B.
It’s the engine driving economic growth and development of India. This project gives an insight into the
impact of transportation infrastructure on a nation's economic well-being.

Part I

The article on the top delves into why transport infrastructure in India is very important for the country’s
progress. So why is it that transport infrastructure is important for the country’s progress? One big
reason as to why transport infrastructure and mainly railways and roadways are extremely important is
because they work as the arteries and veins of the nation. They connect people and trades together.
They carry the lifeblood of commerce – goods, services, and people – connecting markets. This
connectedness of industries and factories throughout different parts of India, not only makes the life
easier of citizens but also contributes to the GDP of India.

Let’s talk about Amul for example. One of the biggest success stories which profited from roadways and
railways is Amul, but before we comment on Amul and their success, it’s important to understand the
history of the company too. Anand Milk Union Limited is a company that is famous for its milk products
such as Amul Butter, Amul Chocolate, Amul Cream etc. It was started in December of 1946. The
organisation was made with the ideology and spirit of togetherness with farmers. Its biggest competitor
“Polson” was infamous for having a toxic relation with farmers, which is why Amul was created with the
help of Sardar Vallabhai Patel. Amul now makes more than 70,000 crores annually.

Roadways and Railways have helped Amul grow significantly. Before Amul, village milk producers faced
challenges transporting small quantities. Roadways and railways enabled efficient collection of milk from
villages to processing facilities. Hence, milk producers now can easily transport milk. For Amul, reaching
distant cities and places has become easier than ever. Transporting their products from their factory in
Anand, Gujarat to places like Delhi, Mumbai, Bangalore etc. One common misconception is that Amul
produces their own milk. Instead, they collect milk from 3.18 milk producers in 16,117 villages across
India. The milk is then taken to their chilling and treatment plant where it is treated and modified
according to their requirements. Transport availability has enhanced this process even more by
eliminating a lot of time taken to get milk to their factory and then distributing them to sellers in cities.
Analysing the impact of roadways and railways on the national economy

Milk and its products are highly perishable as they make ideal feeding grounds for microorganisms.
Drinking spoiled milk can lead to diseases in consumers. Railways and roadways have made transporting
milk easier for manufacturers. These methods of transportation have eliminated extra time taken in old
transportation methods.

The railways charge less too for bulk orders which makes them cost efficient methods of transportation.
Hence, we can conclude that railways and roadways have:

1. Expanded the market from local to national.

2. Made movement of goods efficient for manufacturers, sellers and consumers.
3. Reduced trade barriers between states and cities.

This is just one aspect of many advantages of railways and roadways in India, which we will cover in this
project.

Part II

If the textile factory situated in the central part of Ahmedabad was from the period of 1900s, one can
imagine mountains of raw cotton that were waiting for processing and conversion into yarn. But let me
tell you how this particular cotton ended up here and that is what everyone wants to know. The answer
is roads and railways that existed during the British colonial rule and can be witnessed to this date.
Analysing the impact of roadways and railways on the national economy

Up to this point, India had something it called industry but it was a defective aspect of development.
Some in the form of small-scale production units, usually done based on craft principles, depended on
local resources. Transportation was limited within the country and was costly involving either use of
bullock carts or boats. This kept spreading and distributing required raw materials and finished products
within a restricted limit which became a challenge to large-scale industries.

The usage of rail transport was discovered in the 1800s and can be considered as signs of the evolution
of transport. The first major line starting from Bombay to Thane had changed the existing concept of
carrying cotton. Before this, the raw material like the cotton from far off places in Gujarat would take
several weeks to reach textile mills in Ahmedabad through bullock carting; now it only takes a day. This
not only reduced transportation cost but also ensured an uninterrupted flow of raw materials which was
always a concern for any new and large scale industry as is the case with Amul as mentioned in the part I
above but much ahead of it in the timeline.

However, it was not only limited to textile; There was also easier transportation of coal which is an
energy resource needed for powering steam running factories. The coal deposits in areas of Jharia, Bihar
could now provide the energy needed for industrial hubs. Jamshedpur, established around a single TISCO
became some of the major industrialists' steel plants.

Now, we can conclude that not only did roadways and railways affect trade like Amul but also affected
textiles and the coal industry massively.

Part III
Analysing the impact of roadways and railways on the national economy

Imagine, having to go to your job, working hard and also having to travel miles for it. This is the life of the
majority of the lower middle class people in the Indian workforce. According to a 2018-2019 report by
the Indian Railways, they operated an average of 13,523 trains daily, carrying 8.44 billion passengers.
Hence, we can say that there is one more advantage to having an elaborate railways network.

Railway and roadways not only help in trade and transport but also help people reach their workplace in
time. This is important as the more people that come to work, the more productive that organisation
becomes. Over 13 lakh people in India use railways to get to work according to a report in 2021. Not only
people with jobs, but all sorts of labour workers i.e workers who are employed on a contractual and
project-based basis and short-term work, also use railway networks. Needless to say, Indian workers use
rail transport a lot to commute to their place of work.

Railways and roadways don’t only help people with jobs or some sort of work. They also help people
going to colleges, universities and education centres. Many colleges don’t offer residential services,
hence, people have to travel and sometimes travel for miles to go to study. Some of these people do not
go to orthodox places to study like universities or tuition centres, instead they go to centres which teach
them domestic work like stitching and tailoring to support their families and lives. Individuals can access
training centres farther away, leading to a more skilled workforce, crucial for economic growth. Railways
and roadways are not merely a way to go to a place to learn, it gives the people a certain feeling of
independence. Education is extremely important for a developing country like India,as education also
improves the quality of life among citizens, and these methods of transport support these endeavours.

One more benefit of having a railway network like India, is that it fosters migration from small villages to
big metro cities. This migration between states or cities, is important for up and coming education or
industrial hubs like Amaravati.

Part IV
Analysing the impact of roadways and railways on the national economy

Apart from being a way to drive industrial growth in the country, the transportation structure of India
serves as a connection between countries, enhancing tourism and the growth of nearby areas. India
during the year gives a colourful and different terrain ranging from the Himalayas to the beaches of Goa.
But the ability to do all this to unlock this tourism potential depends on the availability of a transport
network.

There are great displays of cultures, and historical values in every corner of India. Still there are many
such places, which remain undisturbed because they lack transport facilities. Partly, one big reason why
monuments in foreign countries like the Netherlands and France get so much tourist attention is because
of well developed roads and established railway lines. There are so many Baoli’s (wells) and forts in India
that remain undiscovered because they lack transportation facilities. This goes to show how
irreplaceable is the need for such an elaborate railway and roadway network.

Funding in rural roads creates opportunities for exploration of new tourist attractions. Travellers can now
move off the track of common tourist attractions and witness the rural beauty of India. Good road
networks on national parks and other wildlife sanctuaries make tourists observe various species of plants
and animals in their natural environment. This not only makes the tourist activities more fun but also
brings a financial aspect to these areas.

The importance of such a network of transportation is not only for tourism but also to modernise the
way and quality of living in rural locations in India. Tourists also inform citizens living in rural areas of
making their life better. The benefits of tourism development are beyond just tourist satisfaction.
Improved infrastructure attracts investments in hospitality and tourism-related businesses. This creates
jobs, helps local economies, and fosters overall regional development. Homestays run by local families,
handicraft shops showcasing art forms, and cultural performances, all these elements flourish as tourism
flourishes.

The success of tourism promotion is dependent on collaborative measures between the government,
private sector, and local communities. Local communities should be actively involved in developing
tourism opportunities while preserving their cultural identity. Government initiatives like skill
development programs for tourism professionals and promoting responsible travel practices can further
attract tourism.

The Vande Bharat Express, already operational on some routes, and the upcoming bullet train projects
promise to change travel experiences and unlock new opportunities for tourism development. Vande
Bharat Express shows the future of comfortable and fast train travel. These trains have modern
amenities, improved seating, and faster acceleration, making long journeys more enjoyable. Bullet trains
are expected to take this experience a step further with even higher speeds and advanced features. This
enhanced comfort will attract tourists seeking a relaxing and luxurious travel experience.
Analysing the impact of roadways and railways on the national economy

Conclusion

In conclusion, Railways and roadways are the backbone of the national economy and the citizens of this
country we call home. By supporting trade, industrial development and human capital, they are driving
this nation forward to become a fully developed country. From reducing time and expense for Indian
organisations like Amul, to easy transportation of coal and cotton in new industrial hubs of India, while
also promoting education and hard work through helping people reach their jobs, colleges and training
centres daily, meanwhile promoting independence and self-sufficiency through tourism, railways and
roadways have helped the country to become better and autonomous. This journey didn’t come without
hurdles and problems, yet these modes of transport have helped us all in some way. The Indian railway
and roadway network is not perfect, but it is evolving. With the new Vande Bharat Express to the new
and coming superfast bullet trains, the Indian railway and roadway networks will become even better
than ever before, and they will always help us, in the future.