What India’s Roads Reveal

Responding to firms like Apple that want to shift from China, India knows it has to improve its transportation infrastructure. With scores in the 3 range on a World Bank transport summary, India lags China and South Korea:

India’s Roads

A NY Times reporter traveled with an Indian trucker to get a firsthand look at India’s roads. Together they covered several hundred miles along the route in red. Destined for a distribution center from the factory, their cargo was eight Suzuki cars:

Driving no more than 35 mph was the rule. Only then could the driver avoid hitting herds of goats (and other four-footed friends), and people, and potholes. But the driver liked his leisurely pace. As he said, “What’s the hurry?” The answer might be that faster transport could attract more investment from companies in China.

You can see the hazards of a typical road:

The Indian government knows it needs a better transportation infrastructure. They told the NY Times reporter that they add 17 miles of new highway a day and nearly tripled the length of four lane highways since 2014. Describing the improvement, one factory official said his shipping times halved from four days to two during the past six years. They also have tried to diminish filling out forms at state borders with digitization. Meanwhile, the government is building dedicated freight corridors to speed up rail freight.

Still though, a road infrastructure is more than concrete. It is also the amenities that dot the side of the road. Truck drivers need rest areas, hotels, and restaurants. They also would enjoy a financial system that lets drivers pay for gas with debit cards and pass through tolls without stopping. And, beyond that, this driver’s truck had no AC for surviving India’s 100 degree heat.

Our Bottom Line: Transportation infrastructure

The United States transportation infrastructure began when representatives from Maryland and Virginia met in 1785 at the Mount Vernon Conference (yes, the meeting was at George Washington’s home.) to rationalize Potomac navigation. The result was a 13-point document that proclaimed the river was a “common highway.” From there we can jump to a 19th century Clinton who lived in New York. As governor, George Clinton jumpstarted East/West commerce by building the Erie Canal. Connecting Albany and Buffalo NY in 1825, it became easier and cheaper to ship manufactured goods and crops between the East Coast and the Midwest. After that we have privately constructed railroads that were supported by government subsidies. Then, skipping a century, we can leapfrog to the highway system built during the 1950s, and to the motels, restaurants, and suburban communities that grew up around it.

You can see that India has a lot to do.

My sources and more: This NY Times article reminded me it was time to return to roads. Then, the World Bank score sheet was the ideal complement. Please note that our featured image was a 2014 photo but I suspect it is still accurate. Also, parts of today’s Bottom Line were in a past econlife post.