The economic reform initiative is expected to raise the long term annual growth rate of the Indian economy from the 3.5 - 4 % of the past to 4.5 - 6%. This implies doubling of freight transport output every 10 to 13 years and doubling of passenger transport output every 7 to 10 years. Foreign trade flows would then double in about 8 years. These are large pressures to exert on a transport system that is currently saturated on the main road and rail links and the possibility arises that the capacity constraints of the transport system, together with that of the power sector, may serve as a constraint on the overall economic growth. The forces that the transport and power sector must accommodate now and in the long term are:
Exports have soared, imports are on the increase and domestic demand is booming - all leading to rise in industrial production and the need for expansion in the transportation sector.
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