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While you can't take a cross-country bus-ride across India, buses are the second most popular way of travelling across states and the only cheap way of reaching many places not on the rail network (eg. Dharamsala).
Every state has its own public bus service, usually named "X Road Transport Corporation" (or XRTC) or "X State Transport Corporation" (or XSTC) which primarily connects intra-state routes, but will also have services to neighbouring states. There are usually multiple classes of buses. The ordinary buses (called differently in different states, e.g. "service bus") are extremely crowded with even standing room rarely available (unless you're among the first on board) as reservations are not possible and they tend to stop at too many places. On the upside, they're very cheap, with even a 5-6 hour journey rarely costing over Rs.100.
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In addition to ordinary public buses, there are luxury or express buses available, and most have air-conditioning now-a-days. Some state transport corporations have even introduced "Volvo" brand buses on some routes which are extremely luxurious and comfortable. These better class "express" or "luxury" buses have assured seating (book in advance), and have limited stops, making them well worth the slight extra expense. But even these better-class buses rarely have toilets and make occasional snack and bathroom breaks.
Private buses may or may not be available in the area you are travelling to, and even if they are, the quality could vary a lot. Be warned that many of the private buses, especially long-distance lines, play music and/or videos at ear-splitting volume. Even with earplugs it can be nerve-wracking. Do not expect public restrooms at all, or even most, bus stops. Unfortunately, the bus industry is extremely fragmented and there are few operators who offer services in more than 2 or 3 neighbouring states. Travel agents usually only offer seats on private buses.
However, long distance bus operators such as Raj National Express www.rajnationalexpress.in and KPN Travels www.kpntravels.in are currently beginning to roll out their operations across the country modelled on the lines of the Greyhound service in the Unites States. There services are excellent and they provide entertainment on board.
Regardless of class of travel, all buses have to contend with the poor state of Indian highways and the havoc of Indian traffic which usually makes them slower, less comfortable and less safe than trains. Night buses are particularly hazardous, and for long-distance travel it's wise to opt for sleeper train services instead.
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