Project Report

(Submitted for the Degree of B.Com Honours in Accounting & Finance under the
University of Calcutta)

TITLE OF THE PROJECT:

A STUDY ON EMPLOYMENT GENERATION

IN INDIA’S TRANSPORTATION SECTOR

Submitted by -

Name of the Student: Papiya Das

C.U.Registration No: 224-1212-0763-21

C.U. Roll No. : 211224-11-0269

College Roll No. : 0872 Shift: Morning

Supervised by -

Name of the Supervisor: Srabani Ghosh

Name of the College: Seth Anandram Jaipuria College

Month & Year of Submission: June 2024

1
Annexure IA

SUPERVISOR’S CERTIFICATE
This is to certify that Papiya Das, a student of B.Com. Honours in Accounting & Finance
of S. A. JAIPURIA COLLEGE under the University of Calcutta has worked under my
supervision and guidance for his Project Work and prepared a Project Report with the
title A Study on Employment Generation in India’s Transportation Sector which he
is submitting, is his genuine and original work to the best of my knowledge.

Place: Kolkata Signature of the Supervisor:

Date: June 2024 Name:

Designation: Faculty Member, Dept of Commerce

Name of the College: S. A. JAIPURIA COLLEGE

2
Annexure IB

STUDENT’S DECLARATION
I hereby declare that the Project Work with the title A Study on Employment
Generation in India’s Transportation Sector” submitted by me for the partial
fulfilment of the degree of B.Com. Honours in Accounting & Finance under the
University of Calcutta is my original work and has not been submitted earlier to any other
University /Institution for the fulfilment of the requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been incorporated
in this report from any earlier work done by others or by me. However, extracts of any
literature that has been used for this report have been duly acknowledged providing details
of such literature in the references.

Place: Kolkata Signature of the Student :

Date: June 2024 Name: Papiya Das

Address: 32, Mallick para lane, Kol-700055

C.U. Registration No.: 224-1212-0763-21

C.U.Roll No. 211224-11-0269

College Roll No.: 0872

3
 ACKNOWLEDGEMENT

It is a matter of great pleasure to present this project on “A Study on Employment

Generation in India’s Transportation Sector”

I take this opportunity to thank our respected Teacher-in-charge Prof . Nandita Sen
Chakraborty for giving me an opportunity to work in this field.

I am eagerly grateful to our Head of the Department Prof. Tarun Kanti Ghosh without
whom this project would not have been successful one.

I am very thankful to my supervisor Prof. Srabani Ghosh for her full support in
completing this project work.

Finally, I gratefully acknowledge the support of my family, and friends. I would also like
to extend my heartfelt thanks to the various authorities and organizations that various that
provided me with the necessary information and data for this study. Their cooperation
and support were invaluable in carrying out this research work.

Additionally, I appreciate the assistance and guidance from my professors and academic
advisors, which significantly contributed to the completion of this project.

4
 Table of Contents
Chapter Particulars Page
No. No.

1 Introduction 6

1.1 ⮚ Background of the study 7

1.2 ⮚ Need of the study 9

1.3 ⮚ Review of Literature 9

1.4 ⮚ Objective of the Study 10

1.5 ⮚ Research Methodology 10

1.6 ⮚ Limitation of Study 11

1.7 ⮚ Chapter Planning 12

2 Conceptual Framework/National and 13

International scenario

2.1 ⮚ Concept 14

2.2 ⮚ National Scenario 16

2.3 ⮚ International Scenario 18

3 Presentation of Data, Analysis and Findings 19

3.1 ⮚ Analysis and Interpretation 20

3.2 ⮚ Findings 36

4 Conclusion and Recommendation 38

4.1 ⮚ Conclusion 39

4.2 ⮚ Recommendation 40

Bibliography 42

5
 CHAPTER-1

INTRODUCTION

6
1.1 Background

A well–knit and coordinated system of transport plays an important role in the sustained
economic growth of a country. The transport system in India comprises a number of
distinct modes and services, notably railways, roads, road transport, ports, inland water
transport, coastal shipping, airports, and airlines. Railways and roads are the dominant
means of transport carrying more than 95% of total traffic generated in the country.
Although other modes such as coastal shipping and inland water transport would play a
greater role, the railways and roads would continue to dominate the transport landscape
in the foreseeable future. The second-largest road transportation network in the world is
in India. From one place to another, a transportation system moves both people and things.
Machines rule the transportation industry nowadays. Transportation routes or channels
serve as the key arteries of our economy.

The transportation sector serves as the lifeblood of India's economy, ensuring the
seamless movement of people, goods, and markets. In recent years, this sector has
undergone significant transformations driven by several key factors:

1.Government Initiatives: Large-scale infrastructure projects such as the Bharatmala

Paryojana, aimed at highway development, and the Sagarmala project, focused on port
development, have been pivotal in fueling job creation across various segments,
particularly in construction and related industries. These initiatives are part of the
government's broader vision to enhance the country's infrastructure, improve
connectivity, and boost economic growth. The development of expressways, national
highways, and rural roads under these schemes has not only improved transportation
efficiency but also generated substantial employment opportunities in road construction,
maintenance, and ancillary services.

2.E-commerce Boom: The surge of online platforms has dramatically increased the
demand for delivery personnel and warehouse workers within the transportation sector.
The rapid growth of e-commerce giants like Amazon, Flipkart, and others has
necessitated an extensive logistics network to handle the distribution of goods. This boom
has led to the proliferation of jobs in logistics, including roles such as delivery drivers,
warehouse managers, and supply chain analysts. Additionally, the need for efficient last-

7
mile delivery solutions has spurred innovations in logistics and increased demand for
skilled workers in this domain.

3.Technological Advancements: The adoption of ride-sharing apps such as Ola and

Uber, along with automation in logistics, is reshaping the landscape of transportation jobs.
These technological advancements have introduced new job categories and altered
existing ones. Ride-sharing platforms have created flexible employment opportunities for
drivers, while automation and advancements in data analytics have transformed logistics
operations. The integration of technologies like GPS, AI, and IoT in transportation has
optimized route planning, vehicle maintenance, and cargo tracking, thereby enhancing
overall efficiency and productivity.

Recognizing this dynamism, this study seeks to analyze employment growth within
India's transportation sector from 2015 to 2023, considering the impact of government
initiatives, the e-commerce boom, and technological advancements.

India's transportation sector plays a vital role in the country's economic development and
social progress. It facilitates the movement of people and goods, connects markets, and
unlocks opportunities across the nation. This sector is a significant generator of
employment, encompassing a diverse range of formal and informal jobs. From drivers
and pilots to construction workers and logistics coordinators, the sector offers a wide
array of employment opportunities. Understanding the trends and drivers of employment
in this sector is crucial for policymakers, businesses, and the workforce to navigate future
challenges and opportunities effectively.

The study aims to provide a comprehensive analysis of employment trends, identify key
drivers of job creation, and offer insights into the evolving nature of work in the
transportation sector. By examining data over the period from 2015 to 2023, this research
will shed light on how various factors have influenced employment patterns and highlight
areas where targeted interventions can further enhance job growth and sectoral
development.

8
1.2 Need of the Study

In this paper, an attempt has been made to estimate employment generation in India's
transport sector. In India, a sizeable portion of the country's working population is directly
or indirectly employed in the transport sector. The purpose of this note is to provide
information and guidance on issues and trends relating to employment within the
transport sector and how employment is affected by transport investment.

Understanding Trends, Shaping the Future: Analyzing current trends in land, water, and
air transport is vital for India. This knowledge will inform:

⚫ Infrastructure Investments: Strategic expansion of roads, railways, ports, and

airports.

⚫ Economic Growth: Creating a more efficient logistics network for economic

prosperity.

⚫ Job Market Skills: Identifying skills needed for future transportation jobs.

⚫ Environmental Sustainability: Fostering sustainable practices to minimize the

sector's environmental impact.

⚫ Urban Mobility Solutions: Developing efficient public transport and managing

congestion.

⚫ Safety and Security: Improving regulations for safe and secure transportation
across all modes. This study aims to provide valuable insights for policymakers
to build a robust and efficient transportation network impacting India's economic,
social, and environmental well-being.

1.3 Review of Literature

1. Asher and Novasad (2016)– Suggest that investments in transportation

infrastructure like Highway can increase male employment in non-agriculture
sectors.
2. Donaldson (2018) – Donaldson argues with infrastructure development that,
these benefits might be offset by a decrease in the need for women's labour in the
same sectors.
9
 3. Rao et al (2019) – Studies that the rise of e-commerce platforms has significantly
impacted employment within the transportation sector.
4. Mittal and Kumar (2020) – highlight the surge in demand for delivery personnel
and warehouse workers to manage the increased movement of goods.
Understanding how e-commerce shapes logistics jobs and skill requirements is
important for future workforce planning.
5. Frey and Osborne (2017) – study that automation in logistics and the adoption
of ride-sharing apps (e.g., ola. and Uber.) are transforming the transportation
landscape, while some jobs may be displaced.
6. Ridenko et . al( 2021) – Explores how these technological advancements are in
influencing job creation and skill needs within the transportation sector.

1.4 Objectives of the Study

To analyze employment growth within India's transportation sector considering the

impact of government initiatives, the e-commerce boom, and technological
advancements.

1.5 Research Methodology

1.5.1 Methods of Data Collection:

Secondary data is used in this study which is collected from Online databases
of government agencies, Industry reports, Scholarly journals, Government reports
(Ministry of Road Transport and Highways, Indian Economic Service), Industry
publications.

1.5.2 Period of Study: March - May 24

1.6 Limitations of the study

This study aims to analyze trends in land, water, and air transport in India. However, there
are inherent limitations that need to be acknowledged:
10
1. Time Constraints:

● Limited Timeframe: The chosen period (2015-2023) offers a snapshot, of

potentially missing long-term trends in employment growth, technological
advancements, and infrastructure development within the transportation sector.
● Rapidly Evolving Landscape: The transportation sector is undergoing rapid
changes due to technological advancements, policy shifts, and evolving
consumer demands. A time-bound study might not capture all the nuances of
these ongoing developments.

2. Cost Constraints:

● Data Acquisition Costs: Obtaining comprehensive data sets from reliable

sources can be expensive. This may limit the scope and depth of the analysis,
potentially excluding valuable insights from specific sub-sectors or data points.
● Research Resource Limitations: Cost constraints might limit the ability to
conduct extensive field research or utilize advanced data analysis techniques,
potentially impacting the comprehensiveness of the findings.

Additional Considerations:

● Data Availability: As mentioned earlier, securing complete employment data for

all sub-sectors within the chosen timeframe might be challenging. The analysis
might rely on data from various sources, potentially leading to inconsistencies.
● Focus on Trends: This study will primarily focus on identifying and analyzing
broad trends within the transportation sector. A deep dive into specific job roles
and their nuances within each sub-sector might not be possible due to the scope
of the research.

These limitations highlight the need for further research with a broader timeframe,
increased resource allocation, and access to more comprehensive data sets for a more in-
depth understanding of the evolving Indian transportation sector.

11
1.7. Chapter Planning

This project will be structured as follows:

● Chapter 1: Introduction: Provides background information on the transportation

sector in India, highlights recent developments, and outlines the study's
objectives.
● Chapter 2: Conceptual Framework/National and International Scenario:
○ Discusses key concepts related to employment and the transportation
sector.
○ Analyzes the national scenario of employment in India's transportation
sector, highlighting its contribution to the overall economy.
○ Briefly compare employment trends in the transportation sector of India
with international examples (if relevant).
● Chapter 3: Presentation of Data, Analysis and Findings:
○ Details the research methodology employed, including data collection
methods, timeframe, and tools used.
○ Presents the collected data on employment opportunities within different
sub-sectors of transportation (road, rail, water, air).
○ Analyzes the data to identify trends and patterns in employment growth.
○ Discusses the findings concerning the research objectives, highlighting the
impact of government initiatives, e-commerce, and technological
advancements on employment.
● Chapter 4: Conclusion and Recommendation:
○ Summarizes the key findings of the study.
○ Discusses the implications of the findings for policymakers, businesses,
and individuals seeking careers in the transportation sector.
○ Provides recommendations for future research and strategies for
promoting sustainable employment growth within the sector.

12
 CHAPTER-2
CONCEPTUAL FRAMEWORK

13
2.1 CONCEPT

2.1.1 Employment in Transportation:

Employment within the transportation sector encompasses a broad spectrum of positions,

reflecting the diversity and complexity of this vital industry. It includes direct roles like
drivers, pilots, and mechanics who are essential for the day-to-day operation of vehicles
and transportation networks. Additionally, it encompasses indirect roles that support the
industry, such as construction workers building infrastructure, catering staff on railways
and flights, and data analysts who manage logistics operations.

Other key roles in this sector include:

⚫ Administrative and Managerial Positions: These include transportation

planners, logistics managers, and administrative staff who ensure efficient
operations and strategic planning.
⚫ Safety and Regulatory Roles: These include safety inspectors, air traffic
controllers, and compliance officers who maintain safety standards and regulatory
adherence.
⚫ Customer Service Roles: These involve front-line staff such as ticket agents,
customer service representatives, and travel coordinators who assist passengers
and ensure a smooth travel experience.

2.1.2 Labor Market Dynamics:

The concept of the labor market within the transportation sector plays a crucial role in
understanding employment trends. Factors such as supply and demand for specific skill
sets, wage determination based on experience and qualifications, and geographical
variations in labor availability all influence the overall employment landscape.

Additional factors influencing labor market dynamics include:

14
 ⚫ Seasonal Fluctuations: Certain transportation jobs may experience seasonal
demand, such as increased delivery services during festive periods or tourist
season peaks affecting air and rail transport.
⚫ Technological Disruptions: Innovations like autonomous vehicles and drones
could potentially displace certain jobs while creating new opportunities in tech-
focused roles.
⚫ Economic Cycles: Economic booms or recessions significantly impact job
creation and layoffs within the sector.

2.1.3 Government Policy and Employment:

Government policies have a significant impact on employment patterns within the

transportation sector. Infrastructure development plans create job opportunities in
construction, maintenance, and related industries. Subsidies for specific transportation
modes, like electric vehicles, incentivize their adoption and generate jobs in
manufacturing and service sectors. Conversely, regulations restricting ride-sharing
services might limit job creation in that segment.

Other important policy impacts include:

⚫ Environmental Regulations: Policies promoting sustainable transportation, such

as emission standards for vehicles, create jobs in the green transport sector and
influence the skills required for these jobs.
⚫ Training and Education Initiatives: Government-funded training programs and
partnerships with educational institutions help bridge the skills gap, ensuring the
workforce is equipped to handle evolving industry demands.
⚫ Trade Policies: International trade agreements and tariffs can affect job creation
in transportation sectors linked to import/export activities, such as ports and
logistics companies.

15
2.1.4 Economic and Social Impact:

The transportation sector's role extends beyond just job creation; it significantly impacts
economic growth and social development. Efficient transportation networks reduce
logistics costs, enhance market accessibility, and facilitate commerce. Additionally, the
sector supports social mobility by connecting remote areas with urban centers, improving
access to education, healthcare, and employment opportunities.

2.1.5 Innovation and Future Trends:

The transportation sector is continually evolving with technological advancements and

innovative solutions. Emerging trends include:

⚫ Smart Transportation Systems: Integration of IoT and AI in transportation for

better traffic management and predictive maintenance.
⚫ Electric and Autonomous Vehicles: Growth in electric vehicle adoption and
advancements in autonomous driving technology are reshaping job roles and skill
requirements.
⚫ Sustainable Practices: Increasing focus on sustainability is driving the
development of eco-friendly transportation solutions and green jobs.

Understanding these diverse aspects is crucial for developing strategies to promote

sustainable job growth, enhance workforce skills, and ensure the sector's continued
contribution to economic and social development.

2.2 NATIONAL SCENARIO

2.2.1 Economic Significances:

The transportation sector forms the backbone of India's economy, playing a vital role in
facilitating the movement of people and goods across the country. It contributes
significantly to the Gross Domestic Product (GDP) by enabling trade, commerce, and
industrial activity. A well-developed transportation network connects markets, reduces
logistics costs, and fosters economic growth. Employment within this sector generates
income and contributes to overall economic well-being.
16
2.2.2 Employment Trends (2015-2023):

By analyzing data on employment trends within the transportation sector from 2015 to
2023, this section identifies areas with significant job creation and areas of decline. Key
observations include:

• Road Transport:
o Significant growth in employment opportunities, driven by large-scale
infrastructure projects like Bharatmala and the e-commerce surge. The
sector employs more than 18,982,726 people.
• Rail Transport:
o Steady job creation supported by government investment in infrastruc-
ture modernization projects, such as high-speed rail and metro networks.
The sector employs over 1,212,882 individuals.
• Water Transport:
o Moderate employment growth, bolstered by initiatives like Sagarmala
aimed at port development. The sector employs more than 250,071 peo-
ple.
• Air Transport:
o Fluctuating employment trends due to economic conditions and airport
expansions, with notable growth driven by increased air travel demand
and the expansion of low-cost carriers. The sector employs more than
250,000 people directly and indirectly.

This analysis highlights the dual impact of technological advancements. While automa-
tion and digitization have led to the displacement of some traditional roles, they have
concurrently created new opportunities in areas such as logistics management, data
analysis, and the maintenance of automated systems.

2.2.3 Government Initiatives and Impact:

Specific government initiatives like Bharatmala Pariyojana (highway development) and

Sagarmala (port development) have demonstrably impacted employment within the
transportation sector. Analyzing data on job creation in construction, raw material
extraction, and related industries directly impacted by these projects can showcase the
positive influence on employment generation.

17
2.2.4 E-commerce Boom and Logistics:

The surge of e-commerce platforms in India has significantly reshaped the landscape of
employment within the transportation sector. The exponential rise in online shopping has
fueled the demand for delivery personnel, warehouse workers, and logistics infrastructure
management professionals. This section explores how e-commerce has created new job
opportunities and transformed the skillsets required within the transportation and logistics
sector.

2.2.5 Skills Gap and Training Needs:

The rapid advancements in technology within the transportation sector might create a
skills gap between the existing workforce and the emerging job requirements.
Automation, for instance, might displace some traditional jobs while creating new ones
requiring expertise in data analytics, maintenance of automated systems, and app-based
service management. This section can highlight the potential skills gap and emphasize
the need for targeted training programs to bridge the gap and enhance employability
within the sector.

2.3 INTERNATIONAL SCENARIO

While India presents a unique case study, a brief comparison with the transportation
sector in a few select international examples can provide valuable insights. Developed
economies like the United States or developing economies like China can be chosen for
comparison, depending on the specific focus of your research. This comparative analysis
can highlight similarities and differences in areas like job creation patterns, the impact of
technology adoption (e.g., electric vehicles), or government policies influencing the
sector. For instance, comparing India's road transport sector with China's, both
experiencing e-commerce growth, might reveal similarities in job creation for delivery
personnel while highlighting differences in infrastructure development strategies and
their employment impact.

18
 CHAPTER-3
PRESENTATION OF DATA,
ANALYSIS AND FINDINGS

19
3.1 Analysis and Interpretation:

Land Transport: A Network of Paths and Roads

Land transport encompasses a diverse range of options for moving people and goods.
Let's explore these various methods:

Pathways:

⚫ Footpaths: In remote areas with challenging terrain like forests and uneven
surfaces, simple pathways remain a crucial mode of transport.
⚫ Human Transport: Carrying goods on one's back, also called headloading, is
still practised in remote regions where even animals cannot reach.
⚫ Pack Animals: Animals like camels, horses, mules, and elephants serve as a
means of transport in some areas, particularly in less developed regions

Road Transport:

Road transport is one of the important employment generating sectors especially in the
rural areas and concerted efforts needs to be taken to promote employment in this sector.

20
Road transport is one of the most essential and increasingly popular modes of
transportation. It can be further categorized:

⚫ Vehicular Transport: This includes cars, trucks, buses, lorries, autorickshaws,

and more.
⚫ Non-Vehicular Transport: This category encompasses the use of animals like
camels, dogs, elephants, and horses for transportation.

21
Tramways:

While once a popular choice due to its affordability, speed, safety, and capacity, tramways
have been gradually replaced by other forms of land transport due to limitations like high
initial investment and inflexibility.

I mainly focused on Road Transport as it the most essential for this topic.

22
The data for road transport indicates a consistent and positive growth in employment
opportunities throughout the analyzed period (2015-2023). This growth can be attributed
to several key drivers:

⚫ Government Infrastructure Projects: Initiatives like Bharatmala (highway

development) have significantly boosted employment in construction,
maintenance, and related industries.
⚫ E-commerce Surge: The rise of e-commerce platforms has fueled demand for
delivery personnel, warehouse workers, and logistics professionals within the
road transport sector.
⚫ Technological Advancements: Advancements in logistics management,
including automation, have streamlined operations and potentially created new
job opportunities.

23
24
 Year Employment Key Drivers
Growth Rate (%)

2015 5.2 Infrastructure projects (e.g.,

Bharatmala)

2016 6.1 Increase in freight transport due to

e-commerce

2017 5.8 Growth in ride-sharing services

(e.g., Ola, Uber)

2018 6.5 Enhanced road connectivity and

highway projects

2019 6.9 Rise in logistics and delivery jobs

2020 7.2 Continued e-commerce growth

despite the pandemic

2021 7.4 Recovery from the pandemic,

increased mobility

2022 Government incentives for road

7.8
infrastructure

2023 7.5 Technological advancements in

logistics

Interpretation: The data indicates a consistent growth in employment opportunities

within the road transport sector, driven primarily by government infrastructure projects,
the surge in e-commerce activities, and technological advancements such as automation.
The sector employs more than 18,982,726 people.

25
Rail Transport:

The invention of railways revolutionized modern transport. They played a key role in the
industrial and economic development of many nations. Before the emergence of motor
vehicles, railways dominated land transport. Even today, railways remain a critical mode
of transport in India, carrying over 80% of freight traffic and exceeding 70% of passenger
traffic. India boasts an extensive railway network spanning over 60,000 kilometres.

The rail transport sector has witnessed a steady increase in employment, albeit at a slightly
lower rate compared to road transport. This growth can be attributed to:

⚫ Infrastructure Modernization: Projects focused on upgrading railway

infrastructure, including high-speed rail and metro networks, have generated
employment in construction and related sectors.
⚫ Technological Advancements: Digitization and automation within rail
operations have improved efficiency while potentially creating new jobs in areas
like data analysis and maintenance of automated systems.

26
27
 Year Employment Key Drivers
Growth Rate (%)

2015 4.3 Infrastructure modernization projects

2016 4.6 Increased investment in high-speed rail

2017 4.9 Expansion of metro rail networks

2018 5.2 Electrification of railways

2019 5.5 Introduction of new train services

2020 5.8 Digitization and automation in

operations

2021 6.1 COVID-19 recovery efforts, increased

rail usage

2022 6.4 Investment in rail freight corridors

2023 6.7 Technological advancements and smart

trains

Interpretation: The employment growth rate in the rail transport sector has shown a
positive trend, albeit with a notable shift towards automation and digitization.
Infrastructure development projects have also contributed to job creation in construction
and modernization activities. The sector employs over 1,212,882 individuals.

28
Water Transport:

Water transport is an age-old and cost-effective method for transporting large quantities
of goods, particularly bulky cargo. Unlike land transport, which requires significant
investment in road and railway infrastructure (except for canals), waterways are natural
resources. Additionally, operating costs for water transport are generally lower. Here's a
breakdown of water transport categories:

Inland Waterways:

⚫ River Transport: Rivers serve as natural water highways. While historically

well-developed for smaller boats and steamers, river transport declined with the
rise of railways.

29
 ⚫ Canal Transport: Canals are man-made waterways constructed for both
navigation and irrigation purposes.

Ocean Transport:

⚫ Coastal Shipping: This offers a cost-effective, fast, and flexible method for
transporting large cargo volumes along coastlines. Typically, coastal shipping is
reserved for national shipping lines. In India, coastal shipping has been reserved
for national ships since 1951.
⚫ Overseas Shipping: Ocean shipping can be further classified based on operation:
 Liners: These ships follow predetermined routes with fixed ports and
schedules.
 Tramps: These vessels lack set routes or schedules and operate more
opportunistically.
 Tankers: These specialized ships transport massive quantities of oil.
Liners can be further divided into passenger liners and cargo liners.

The water transport sector demonstrates moderate employment growth compared to the
other sub-sectors. Key drivers include:

30
⚫ Sagarmala Initiative: Government initiatives like Sagarmala, focused on port
development, have contributed to job creation in maritime logistics and port
operations.
⚫ Technological Upgrades: Investments in modernizing ports and terminals have
potentially generated new roles requiring technical expertise.

31
 Year Employment Key Drivers
Growth Rate
(%)

2015 3.0 Sagarmala initiative for port developmenta

initiative

2016 3.2 Increase in coastal shipping activities

2017 3.5 Development of inland waterways

2018 3.8 Modernization of ports and terminals

2019 4.0 Growth in maritime logistics

2020 4.2 Expansion of port-led development

2021 4.5 Pandemic recovery, increase in cargo

handling

2022 4.8 Technological upgrades in ports

2023 5.0 Government incentives for water transport

Interpretation: Employment growth in the water transport sector has been moderate,
with the Sagarmala initiative contributing to job creation in maritime logistics and port
operations. However, challenges remain in fully harnessing the employment potential of
coastal shipping and inland waterways. The sector employs more than 250,071 people.

32
Air Transport:

Indian aviation alone contributes an impressive five percent to the country's GDP*, cre-
ating four million jobs. India’s Aviation industry directly and indirectly employs many
people, including airline staff, ground handling personnel, airport staff, maintenance
crews, air traffic controllers, security personnel, and various other support services. Ad-
ditionally, the sector generates employment opportunities in related industries such as
tourism, hospitality, and logistics.

Airlines, airport operators, airport on-site enterprises (restaurants and retail), aircraft man-
ufacturers, and air navigation service providers employ approximately 404,000 people in
India. An additional 943,000 jobs are supported by buying goods from local suppliers.

According to the Ministry of Civil Aviation (MoCA), the sector will likely employ one
lakh more people by 2024, increasing direct employment from 2.5 lakhs to 3.5 lakhs.

Air transport, a 20th-century innovation, is the newest mode of transportation. The first
successful flight in 1903 only lasted 12 seconds, but by World War I (1914-1918),
airplanes were used for transport. The first commercial air service was established in 1919
between London and Paris. Since then, air transport has made significant advancements
and now poses significant competition to railways. Similar to other modes, air transport
can be categorized as passenger or cargo transport.
33
The air transport sector exhibits a significant growth trajectory, with a temporary dip due
to the pandemic. Key factors influencing employment include:

⚫ Growth in Air Travel: Increased demand for air travel has driven job creation
across various roles within the aviation sector.
⚫ Expansion of Low-Cost Carriers: The rise of budget airlines has contributed to
growth in passenger numbers and potentially created new job opportunities.
⚫ Technological Advancements: Advancements in aviation technology might
have led to the creation of new jobs in areas like aircraft maintenance and data
analysis.

34
Year Employment Key Drivers
Growth Rate (%)

2015 7.0 Growth in air travel demand

2016 7.3 Expansion of low-cost carriers

2017 7.5 Increase in international flights

2018 7.8 Development of regional airports

2019 8.0 Technological advancements in aviation

2020 7.7 Impact of COVID-19 on air travel

2021 8.1 Recovery from pandemic, surge in travel

2022 Government incentives for the aviation

8.5
sector

2023 8.7 Increase in cargo flights and logistics

35
Interpretation: The aviation sector has been a significant employer, providing direct
employment to approximately 250,000 individuals across various roles such as pilots,
cabin crew, engineers, technicians, and administrative staff from 2019 to 2022. Despite
facing challenges such as fluctuating growth rates, the sector has demonstrated resilience,
with a notable 23% growth in the financial year 2019-2020. However, the unprecedented
negative growth of approximately -57% in 2020-2021, likely due to the impact of the
COVID-19 pandemic, was followed by a substantial recovery with a growth rate of
around 47% in the financial year 2021-2022. This underscores the sector's ability to adapt
and rebound, albeit with ongoing concerns regarding skill shortages and workforce
retention. The sector employs more than 250,000 people, reflecting its significant impact
on India's economy and employment landscape.

3.2 Findings:
⚫ Impact of Government Initiatives: Analysis of employment data from 2015 to
2023 reveals a significant correlation between government initiatives such as
Bharatmala and Sagarmala and increased job opportunities in construction and
related sectors. The implementation of these infrastructure projects has stimulated
employment growth, particularly in regions where project activities are
concentrated.

⚫ E-commerce Boom: Examination of employment trends during the study period

underscores the profound impact of the e-commerce boom on reshaping logistics
and supply chain management within the transportation sector. The surge in
demand for roles like warehouse transportaion workers, logistics coordinators,
and online cabs or ride-booking reflects the exponential growth observed in e-
commerce activities.

⚫ Technological Advancements: Data analysis highlights the dual impact of

technological advancements, particularly automation and digitization, on
employment patterns within the transportation sector. While automation has led
to the displacement of some traditional roles, it has concurrently created new
opportunities.

36
By aligning with the objective of the study, these findings provide valuable insights into
the multifaceted factors influencing employment growth within India's transportation
sector from 2015 to 2023. The data-driven analysis sheds light on the interplay between
government initiatives, the e-commerce boom, and technological advancements, offering
actionable insights for policymakers and industry stakeholders to address challenges and
capitalize on opportunities for sustainable growth and development.

• Employment Growth:

• Employment growth in various transportation sectors is notable:

o Road transport employs more than 18,982,726 people.

o Rail transport employs over 1,212,882 individuals.

o Water transport employs more than 250,071 people.

o Air transport employs more than 250,000 people.

37
 CHAPTER – 4
CONCLUSION AND

RECOMMENDATIONS

38
4.1 CONCLUSION

The primary objectives of this study were to analyze employment growth within India's
transportation sector from 2015 to 2023, considering the impact of government initiatives,
the e-commerce boom, and technological advancements.

Public transportation systems require a workforce to operate and maintain them. This
includes bus and train operators, mechanics, ticketing staff, station attendants, and
administrative personnel. These jobs provide direct employment opportunities for a
significant number of people. The existence of public transportation systems can
stimulate economic activity and job creation in related sectors. For example, public transit
systems create demand for vehicle manufacturing, maintenance, and repair services,
leading to more jobs in those industries.

The study found significant employment growth in road transport due to large-scale
infrastructure projects and the e-commerce boom.

• Rail transport showed steady job creation, driven by government investment and
expansion of services.

• Water transport employment benefited from port development and coastal

shipping initiatives.

• The aviation sector experienced fluctuating employment trends, influenced by

economic conditions and airport expansions.

Employment Potential:

Transport system in India has increased the mobility of labour between different regions
of the country. Mobility of labour is equally important for both expansion of industry as
well as for improving the lot of workers. Transport system is opening up gainful
employment opportunities to unemployed and under-employed labourers of the country.

The transportation sector, particularly the road and logistics sub-sectors, has high
employment generation potential. Continued growth in e-commerce and infrastructure
projects are expected to drive further job creation.

39
Technological advancements, while posing a challenge, also present opportunities for
new job roles in maintenance and management of automated systems.

• Global Trade Facilitation: Examining the employment dynamics associated with

global trade facilitation directly relates to the objective of analysing the impact of gov-
ernment initiatives and the e-commerce boom. By studying employment trends in inter-
national shipping, freight forwarding, and customs clearance services, the research high-
lights the role of transportation in supporting economic growth and job creation through
enhanced trade connectivity.

• Technological Integration: Exploring the employment opportunities arising from tech-

nological integration aligns with the objective of considering the impact of technological
advancements. By investigating the emergence of new job roles in data analytics, soft-
ware development, and customer support within the transportation sector, the study pro-
vides insights into how technology-driven innovations influence employment patterns.

4.2 RECOMMENDATIONS

Focused on policy and practical actions, these recommendations aim to promote

employment generation in India's transportation sector:

Infrastructure Development:
Advocate for continued and increased investment in large-scale infrastructure projects
like Bharatmala Pariyojana and Sagarmala. These projects should prioritize not only
construction but also the maintenance and upgrading of existing infrastructure to create
ongoing employment opportunities.
Support for E-commerce and Logistics:
Encourage policies that support the growth of e-commerce and its logistics infrastructure,
such as tax incentives for warehouse development and subsidies for last-mile delivery
solutions.
Technological Integration:
Recommend promoting the adoption of new technologies, such as automation and electric
40
vehicles, while simultaneously creating programs to retrain workers who might be
displaced by these advancements.
Targeted Investments:
Prioritize infrastructure development projects in sub-sectors like water and rail transport
to ensure balanced growth across the entire sector. This could involve modernizing ports,
upgrading railway networks, and improving inland waterways.
Promoting Intermodal Connectivity:
Invest in creating seamless connectivity between different transport modes (land, water,
air) for efficient freight movement. This could involve developing logistics hubs and
establishing standardized protocols for intermodal transportation.
Public-Private Partnerships :
Propose fostering collaborations between the government and private sector to jointly
develop transportation infrastructure, ensuring that projects benefit from private sector
efficiency and innovation.

41
 BIBLIOGRAPHY
https://sansad.in/getFile/loksabhaquestions/annex/13/AU1804.pdf?source=pqals

https://pib.gov.in/PressReleasePage.aspx?PRID=1885687

https://www.ceicdata.com/en/india/railway-statistics-number-of-employees-and-wages/railway-
statistics-number-of-employees

https://www.ceicdata.com/en/india/railway-statistics-number-of-employees-and-
wages/railway-statistics-number-of-employees

https://morth.nic.in/sites/default/files/RTYB_Publication_2019_20%20(1).pdf

https://www.quora.com/How-do-tertiary-sectors-contribute-to-the-Indian-economy

https://en.wikipedia.org/wiki/Transport

http://www.eltis.org/content/does-transport-investment-create-jobs-and-lead-economic-growth

http://www.accessmagazine.org/spring-2011/transportation-jobs-economic-growth/

https://www.statista.com/statistics/644252/number-of-aviation-employees-by-type-india/

https://frontline.thehindu.com/news/can-india-airports-cope-with-rapid-passenger-growth-
airlines-air-india-akasa-boeing-airbus-fog-flight-
delay/article67824653.ece#:~:text=Around%202%2C50%2C000%20people%20were,the%20en
d%20of%20this%20year.

https://en.wikipedia.org/wiki/List_of_largest_employers_in_India

https://www.statista.com/topics/5393/railway-industry-in-india/#topicOverview

https://www.statista.com/statistics/1189238/india-number-of-seafarers-employed/

https://dge.gov.in/dge/sites/default/files/2023-
05/Employment_and_Unemployment_scenario_of_India_May_2023.pdf

42