Highway development in the country since 2013 has had a multiplier effect on India's economic growth with each unit of expenditure made on highway construction resulting in a 3.21 unit increase in GDP growth, shows the preliminary report by the Indian Institute of Management, Bangalore, accessed by ET.
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Further, there has been a 9% increase in household income, 6% increase in household expenditure and 10.4% increase in car sales in the country between 2013 and 2022.
Besides, there has been a 2.94% and 1.33% decrease in cost of transportation between the factory and the supplier and between factory and the customer respectively.
The report, done by the Indian Institute of Management Bangalore’s Supply Chain Management Centre (IIMB-SCMC) in partnership with the National Highways Authority of India (NHAI), was aimed at assessing the socio-economic impact of national highway development during this period.
“This research study reveals a notable increase in household incomes, relative impact on household expenditure, improved access to agricultural markets, optimized employment accessibility and the availability of job opportunities,” Jitamitra Desai, professor of operations research in the decision sciences (DS) group at the Indian Institute of Management, Bangalore