Model Answer

Introduction

The expansion of existing airports and development of new ones in India can provide numerous advantages beyond just enhancing travel connectivity. Here are the key benefits:

1. Employment Opportunities

Expanding airport infrastructure leads to a significant increase in employment across various sectors. This includes direct jobs in aviation, ground staff, engineering, and managerial positions. The air transport sector supports 6.2 million jobs in India, with 2.5 lakh jobs in aviation and aeronautical manufacturing alone.

2. Economic Growth

The aviation sector plays a pivotal role in driving economic growth. By facilitating trade, tourism, and attracting investments, airports contribute significantly to GDP. According to the International Air Transport Association, the air transport industry supports an estimated US $13 billion in India’s GDP.

3. Technological Advancements

Airport expansions often involve the integration of advanced technologies that improve efficiency, safety, and the passenger experience. A notable example is the introduction of DIGIYATRA in 13 Indian airports, which has streamlined the boarding process for passengers.

4. Support for Remote Communities

Airports in remote areas provide vital services, including healthcare access and postal services. The UDAN 5.1 scheme, for instance, plans to enhance connectivity to remote regions, including through helicopter services, improving the quality of life for residents.

5. Attraction of Foreign Tourists and Investment

Airports make regions more attractive for multinational companies and foreign tourists, thus fostering foreign direct investment (FDI). In 2022, international visitors spent USD 22.9 billion in India, showcasing the positive impact of improved connectivity on tourism and investment.

6. Social Integration

Improved air connectivity promotes social integration by making travel more accessible, facilitating cultural exchange, and enhancing mutual understanding among different regions of the country.

7. Humanitarian Aid and Disaster Relief

Airports play a crucial role in rapid disaster response by enabling the swift deployment of humanitarian aid and emergency personnel during natural disasters.

In conclusion, airport expansion in India not only enhances connectivity but also supports employment, economic growth, technological innovation, social integration, and disaster relief efforts. However, it is essential to focus on affordability, as air travel remains out of reach for many citizens.

Model Answer

Prospects of Inland Waterways in India

1. Reduction in Transportation Cost: Inland waterways offer a cost-effective alternative to road and rail transport. According to a study, one liter of fuel can move 24 tons of cargo for 1 km on roads, 95 km on rail, and 215 km on inland waterways, highlighting the cost-effectiveness of water transport.
2. Environmentally Friendly: Waterways reduce road congestion and vehicular pollution by transporting goods across rivers and canals, easing the burden on highways. This shift not only benefits the environment but also enhances road safety.
3. Boost Economic Integration: Integrating inland waterways with national projects like the Dedicated Freight Corridors (DFCs) and the Sagarmala Project facilitates the smooth exchange of goods across transport modes. This connectivity can stimulate economic growth by connecting remote regions, such as the North-Eastern states, to global trade routes. The Kaladan Multi-Modal Project is a notable example, offering a more efficient route to the region.
4. Multiplier Effect and Linkages: Investment in inland waterways fosters growth across sectors, including port development, boat-building, and ancillary industries, creating jobs and enhancing regional development.

Challenges of Inland Waterways in India

1. Lack of Continuous Connectivity: While the waterway network spans across 15,000 km, it lacks continuous connectivity. For instance, in 2018, a cargo vessel got stuck near Ramrekha Ghat in Bihar due to shallow waters, highlighting the inconsistent navigability of certain routes.
2. Inadequate Water Channel Depth: Many national waterways suffer from insufficient depth, especially due to siltation and seasonal variations, making them unsuitable for large vessels. Approximately 20 out of the 111 identified waterways are deemed unviable for regular use.
3. High Turnaround Time: The absence of efficient material handling equipment and inadequate terminal facilities at key ports results in slow cargo evacuation, leading to congestion and high turnaround times.

In conclusion, while inland waterways have substantial potential in reducing costs and enhancing economic integration, addressing connectivity, depth issues, and port infrastructure is crucial for realizing their full potential.

Model Answer

Introduction

India’s maritime sector plays a crucial role in its economy, with over 95% of trade by volume and 65% by value depending on sea transport. Recent reforms in India’s port sector have boosted its global recognition and operational efficiency. The World Bank’s 2023 Logistics Performance Index (LPI) report highlights India’s impressive progress, with the country moving from 44th to 22nd in the “International Shipments” category since 2014.

Key Reforms in India’s Port Sector

1. Sagarmala Initiative (2015)

• The Sagarmala Initiative was launched to harness India’s extensive coastline and waterways for port-led industrialization.
• Focus Areas:
  • Enhancing port infrastructure and logistics efficiency.
  • Promoting coastal and inland shipping.
  • Optimizing cargo-handling capacity and reducing logistics costs.
• Impact: Sagarmala is transforming ports into hubs of industrial and economic growth, making India more competitive globally.

2. Port Modernization and Expansion

• Substantial investments have been made to modernize and expand existing ports and develop new ones.
• Upgraded Facilities:
  • Ports have been equipped with deeper drafts and better cargo-handling capabilities.
  • For example, the capacity at 12 major Indian ports has grown from 871 million metric tonnes (MMT) in 2015 to 1,617 MMT in 2023.
• These improvements allow ports to handle larger vessels and a wider range of cargo types, contributing to better trade facilitation.

3. Private Sector Participation

• The government has promoted Public-Private Partnerships (PPPs) to enhance efficiency and innovation in port operations.
• Benefits: This has attracted significant investments, improving port infrastructure and management.

4. Liner Shipping Reforms (2016)

• The Liner Shipping Reforms aim to make Indian ports more competitive.
• Achievements:
  • Lower shipping costs.
  • Enhanced turnaround times, with India’s average turnaround time (TRT) of 0.9 days, among the best globally.

5. Green Port Guidelines

• The Harit Sagar Green Port guidelines promote sustainable practices in ports, focusing on environmentally safe operations, which helps in reducing the ecological footprint.

Legislative Changes Supporting Port Reforms

1. Major Port Authorities Act, 2021

• This act grants greater autonomy to major ports, empowering them to operate more efficiently and independently.

2. Marine Aids to Navigation Act, 2021

• Ensures better safety and efficiency in vessel traffic management, aligning with global standards.

3. Indian Vessels Act, 2021

• Standardizes regulations for inland waterways across the country, improving uniformity and operational efficiency.

4. Ease of Doing Business

• The National Logistics Portal (Marine) provides a single-window digital platform for various stakeholders, streamlining the processes involved in cargo services, regulatory compliance, and financial services.
• The Sagar Setu app further enhances the ease of goods movement in ports.

5. Foreign Direct Investment (FDI)

• The government allows 100% FDI in port projects under the automatic route, along with a 10-year tax holiday for port developers, which promotes private investment in port infrastructure.

Future Directions

1. Integrated Connectivity

• There is a need to strengthen the integration of ports with railways, roadways, and inland waterways for seamless cargo movement between ports and hinterlands.

2. Digital Transformation

• Adopting advanced technologies like blockchain, Internet of Things (IoT), and artificial intelligence will streamline port operations, including cargo tracking and documentation processes.

3. Investment Promotion

• The government plans to attract more investments through PPP models and investor-friendly policies.

4. Regional Connectivity

• Promoting transshipment and coastal shipping will enhance India’s regional trade, especially in the Indian Ocean.

5. Safety and Security

• Ensuring strict safety measures and compliance with international standards is essential to prevent accidents and environmental hazards at ports.