MasteryExams
Economics • Indian EconomyHard

Assess the macroeconomic impact of the establishment of the Kundli-Manesar-Palwal (KMP) Expressway and the Western Dedicated Freight Corridor on Haryana's industrial economy. Which structural economic shift is primarily facilitated by these transport logistics investments?

A. Decentralization of industrial manufacturing away from congested metropolitan cores toward integrated logistics hubs along the transport corridors✓ Correct Answer
B. Absolute cessation of all freight movement in favor of passenger-only transit
C. Complete relocation of all industrial manufacturing outside national boundaries
D. Elimination of all warehousing and supply chain activities within the state

💡 Solution & Explanation

The KMP Expressway and Western Dedicated Freight Corridor reduce transit times, lower logistics costs, and decongest national capital traffic by enabling heavy freight bypasses, thereby catalysing warehousing and manufacturing clusters along the peripheral highway network. Transport infrastructure investments generate high economic multipliers by lowering transaction and distribution costs for industrial enterprises. These corridors position Haryana as a premier logistics and warehousing hub in northern India.

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