Lets look at some of the issues first. (I have already discussed electricity separately)
1. A typical Indian trucker is using lousy roads, is harassed by the police on every few hundred kilometers, and pays about Rs 80,000 (2000 USD) in bribes annually. Eventually, this adds to the cost of Indian goods in international markets, and also hampers the ability to deliver goods in a timely manner.
2. India’s largest container port, Jawaharlal Nehru Port Trust (JNPT), has a waiting period of up to 10 days. Port of Singapore, in comparison, took just about half a day. For the size of our coastline, we have very few ports of the size and capacity that are necessary to fuel growth.
3. Indian Railways run at a snails pace. A typical freight trains runs at 20-30 KMPH, and the average speed of the "Super Fast" Rajdhani and Shatabdi trains is only about 80KMPH.
Solutions:
1. Harmonize the taxes at the national level (VAT/GST type system), so that there is no need for a state level taxes, and hence the scope for harassment of truck drivers.
2. Invest in ports, privatize all major ports.
3. Invest in railways with a view to increase the speed.
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