Facilitating Trade and Improving Competitiveness through Improved Road Network: Issues and Way Forward

Road transport play a key role in emerging markets like India in boosting economic development and trade, linking consumers across remote regions and in improving overall competitiveness of industries. Over the years, India has focused on creation of road infrastructure but the logistics costs are still high and the supply chain is fragmented. This paper identifies the barriers to establishment of a seamless supply chain and suggests policy recommendations for the same. The paper highlights that apart from creation of infrastructure, India should also focus on efficient use of existing infrastructure by setting up a computerised ‘green channel system’ which connects toll booths of different states through a common electronic data interchange. There is need for an integrated logistics policy, modern traffic management system and streamlining of existing multilayered tax system, among others for seamless transport. In this regard, India can learn from the experiences of European Union in market integration and in improvement of transport efficiencies.