Monday, September 18, 2006

India in MOTION

What is common between Lalu Prasad Yadav, Ratan Tata and C. Y. Gopinath? The first one is a hard-core politician busy re-inventing himself as a transformational CEO. The second is busy changing the venerated Tata group into a multinational conglomerate. And the third is a first generation entrepreneur who has created a market that did not exist before. On the face of it, there is not much that is similar between the three. And yet, there is a common thread that links the three together. They are symbols of the relatively quiet and unheralded manner in which the transportation sector in India is undergoing a revolution. While analysts and the media have been singing hosannas to well hyped sectors like information technology (IT) and telecom, people like Yadav, Tata and Gopinath are ensuring that efficient, cost effective and fast transportation is quietly making India Inc. much more competitive than it was even a few years ago.

Road transport, air cargo, freight movement through railways have all undergone a dramatic makeover in the last few years. Exporters are happy now that shipments are not unduly delayed; companies are happy since products are taking much less time to reach destined markets. Says Rahul Ahuja, a Gurgaon based readymade garments exporter, “I had almost lost my credibility with customers in Europe and North America because of delayed shipments. That’s a thing of the past now.” Shashank Singh, owner of a fleet of ten trucks, echoes the same view: “I could never know earlier if my truck would reach Mumbai from Delhi in seven days or not. Now, I know for certain that it takes three days at the most.” The Indian Railways under Lalu Yadav too has made life easier for companies ferrying bulky goods. Perhaps the only bad news coming from the transport front is from the water transport segment, with Indian ports still a nightmare.

The primary reasons behind this quiet revolution in the transport sector in India are reform-oriented policies that have improved the quality of highways and roads, allowed air cargo to grow at a rapid rate and make Indian Railways a reliable transporter.

The positive impact on passenger traffic is far more visible than in the freight segment. Millions of Indians now fl y because of low cost airlines. More than one million cars will be manufactured this year in India. And Lalu Yadav’s innovative initiatives are making train travel a much better experience for Indians. Then again, new services like the Delhi Metro show a glimmer of hope that urban transport and commuting in India need not be a nightmare. Who knows, Indian transport might just deliver the goods for India Inc.

Source:- IIPM Editorial

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