India’s Transport Sector in 2025

In 2025, India witnessed severe disruptions in its transport sector, including overcrowded trains during peak seasons and widespread flight cancellations. These events exposed the mismatch between rising demand and limited transport supply. The situation reflects deeper structural issues such as underinvestment, infrastructure stress, and policy constraints under a neoliberal economic framework.

Challenges Hindering India’s Transport System

Infrastructure Deficiencies

Major urban centres such as Delhi, Mumbai, and Kolkata face severe road congestion due to inadequate and inefficient public transport systems. Urban railways suffer from chronic overcrowding, delays, and insufficient capacity, especially during peak and festive periods.
Much of India’s rail and road infrastructure is outdated, leading to slow travel, frequent breakdowns, and increased safety risks.

Neo-Liberal Policy Constraints

India’s economic model limits the state’s fiscal space for large-scale public investment while encouraging private-sector participation with limited regulation. This creates a dual challenge:

• Public transport remains affordable but under-funded, resulting in overcrowding and service deterioration.

• Privatisation and deregulation have often produced monopolies or oligopolies, such as IndiGo’s dominance in aviation, reducing competition and inflating prices.

As a result, neither public nor private systems adequately safeguard consumer welfare.

Safety and Security Concerns

India has one of the highest road accident rates globally, with pedestrians and cyclists particularly vulnerable due to unsafe infrastructure.
Despite improvements, rail accidents and derailments continue to occur. The 2025 Air India crash in Ahmedabad, which killed over 200 people, intensified concerns regarding systemic safety gaps across transport modes.

Environmental Sustainability Challenges

The transport sector contributes nearly 14% of India’s energy-related CO₂ emissions and is a major source of urban air pollution.
The transition toward electric vehicles (EVs) remains slow. Moreover, climate change-induced extreme weather events such as floods and storms increasingly threaten transport infrastructure, underscoring the need for climate-resilient systems.

Lack of Data-Driven Decision Making

Despite growing digitisation, the sector lacks integrated data-driven planning for congestion management and logistics optimisation. Technologies such as smart traffic signals, GPS-enabled buses, and digital ticketing remain uneven and underdeveloped across regions.

Logistics and Freight Movement Bottlenecks

India’s logistics sector is hampered by inefficient warehousing, outdated transport systems, and customs delays, increasing costs and carbon emissions.
Additionally, corruption and weak governance often result in project delays, budget overruns, and poor execution.

Social Equity and Accessibility Issues

While low public transport fares ensure affordability, they do not guarantee accessibility or quality. Public transport systems remain overcrowded, unreliable, and unsafe for women, the elderly, and persons with disabilities.

Importance of India’s Transport Sector

The transport sector acts as the backbone of national mobility, enabling large-scale movement of people and goods across road, rail, and air networks.
It reduces logistics costs, improves market efficiency, and supports India’s ambition to become a global manufacturing and export hub.

Transport infrastructure strengthens national integration by connecting remote, rural, border, and tribal regions with economic centres. It supports agriculture, MSMEs, tourism, trade, and industry, while enhancing social inclusion by improving access to healthcare, education, jobs, and public services.
It also plays a vital role in disaster response and supply-chain resilience.

Major Government Initiatives for Transport Development

• PM Gati Shakti – National Master Plan: Integrated infrastructure planning across sectors.

• National Infrastructure Pipeline (NIP): Long-term funding for transport projects.

• Bharatmala Pariyojana: National highways and economic corridors.

• Sagarmala Programme: Port-led development and coastal shipping.

• Metro Rail Policy, 2017: Metro expansion, PPPs, and TOD.

• UDAN Scheme: Affordable regional air connectivity.

• PM e-Bus Sewa & FAME-II: Electric buses and EV adoption.

• Intelligent Transport Systems (ITS) Policy, 2022: Smart mobility solutions.

• Amrit Bharat & Vande Bharat: Railway station and train modernisation.

• Smart Cities Mission: Integrated urban mobility and NMT promotion.

Measures to Strengthen India’s Transport System

Modernising Public Transport

India must prioritise urban mobility, rail upgrades, and integrated logistics parks using NIP and PM Gati Shakti.
The N.K. Singh Review Committee (2016) recommended greater fiscal flexibility under FRBM, allowing targeted relaxation for critical infrastructure investment.

Building Safer Transport Systems

Urban transport must align with the National Road Safety Policy (2010) and the WHO Safe System Approach.
The Kavach 5.0 automatic train protection system should be deployed across high-density rail routes.
Mandatory urban safety audits should be enforced under NUTP 2006.

Promoting Sustainable and Low-Carbon Mobility

India should leverage the National Electric Mobility Mission Plan (NEMMP) to shift commuters toward EV-based public transport.
Under the NAPCC and National Mission on Sustainable Habitat, infrastructure must be designed to withstand floods, heatwaves, and storms.
Expansion of Non-Motorised Transport (NMT) should continue through schemes like Streets for People and Cycles4Change.

Accelerating Data-Driven Governance

Effective implementation of the ITS Policy, 2022 is required for real-time traffic data, predictive analytics, and smart logistics.

Strengthening Social Equity and Accessibility

Accessibility norms under the Rights of Persons with Disabilities Act, 2016 must be strictly enforced.
Women’s safety should be enhanced through Nirbhaya Fund-supported CCTV networks, panic buttons, last-mile connectivity, and well-lit pedestrian infrastructure.

Conclusion

India’s transport crises in 2025 reveal a system under severe strain from rising demand and inadequate investment. Addressing infrastructure gaps, safety deficits, environmental challenges, and social inequities is now urgent. A resilient, inclusive, and sustainable transport system will depend on renewed public investment, smart governance, and people-centric policy design to ensure efficient and equitable mobility for all.