Mains Practice Questions

Introduction

Efficient logistics infrastructure is crucial for economic growth and competitiveness. India, ranked 38^th in the World Bank’s Logistics Performance Index (LPI) 2023, faces high logistics costs (14-18% of GDP, compared to the global average of 8%- Economic Survey 2022-23 ).

• Bharatmala Pariyojana and Dedicated Freight Corridors (DFCs) are crucial for boosting multi-modal connectivity and logistics efficiency by integrating road, rail, and port networks.
• Efficient Logistics ➡️ Lower Costs ➡️ Faster Goods Movement ➡️ Better Trade ➡️ Economic Growth & Competitiveness

Body

Multi-Modal Connectivity for Optimizing India's Logistics:

• Reduction in Logistics Costs: Multi-modal transport reduces the high logistics costs in India (14% of GDP) by optimizing transport modes for efficiency.
• Seamless Freight Movement: Ensures smooth end-to-end connectivity, minimizing delays and improving supply chain efficiency.
  • It also offers supply chain flexibility to choose and design the most optimum modal mix in terms of cost, time and reliability
• Decongestion of Roads: Reduces over-reliance on road transport, mitigating congestion, pollution, and maintenance costs.
• Support for EXIM Trade: Enhances export-import efficiency by connecting industrial hubs with ports and global markets.
  • It also brings ease of business in the logistics sector, a key enabler in making Indian industry competitive.
• Regional Development: Boosts connectivity in underdeveloped regions, promoting economic growth and reducing disparities.
• Supply Chain Resilience: Improves infrastructure reliability and adaptability during disruptions like natural disasters or economic crises.

Role of Bharatmala in India's Logistics Landscape

• Enhanced Economic Corridors: Bharatmala aims to develop 26,000 km of economic corridors to streamline freight traffic on key routes, including the Golden Quadrilateral and North-South, East-West corridors.
• First Mile and Last Mile Connectivity: Development of 8,000 km of inter-state corridors and 7,500 km of feeder routes bridges gaps in logistics chains, improving accessibility for industries and consumers.
• Border and Coastal Connectivity: Boosts trade with neighboring countries like Nepal and Bhutan by improving infrastructure at international borders.
  • Links to coastal areas through Sagarmala and Bharatmala enhance port-led economic growth, facilitating both exports and imports.
• Modern Expressways and Greenfield Projects: Development of Greenfield expressways reduces congestion on traditional routes.
  • Example: Delhi-Mumbai Expressway reduced travel time between Delhi and Mumbai from 24 hours to just 12 hours.

Role of Dedicated Freight Corridors in India's Logistics Landscape:

• Faster and Efficient Freight Movement: DFCs are specialized railway routes designed for freight traffic, allowing faster and heavier trains.
  • The Eastern DFC (EDFC) and Western DFC (WDFC) improve connectivity to industrial hubs, coal mines, power plants, and ports.
• Decongesting Rail Networks: India's traditional rail network's Golden Quadrilateral, carrying 52% of passenger and 58% of freight traffic, suffers from severe congestion.
  • DFCs reduce this burden by diverting freight traffic to dedicated routes.
  • Currently, on an average, 325 trains are running per day, 60% more than 2023. The freight trains on DFC are faster, heavier & safer.
• Strengthening Export-Import (EXIM) Trade: The Western DFC, linking ports like Mundra and Jawaharlal Nehru Port Terminal, enhances connectivity for EXIM cargo.
  • The WDFC’s double-stack container trains reduce transport costs for exports, making Indian goods more competitive globally.
• Regional Economic Development: DFCs have a "social-equalizing effect" as per research, benefitting lower per-capita GDP states through improved connectivity and lower logistics costs.
  • Feeder routes enhance access for industries and smaller businesses located in interior regions.
• Future Expansion Plans: Four additional corridors, such as the East Coast Corridor (Kharagpur-Vijayawada) and North-South Corridor (Vijayawada-Itarsi), are planned, aiming to further optimize freight movement.

Conclusion

Bharatmala Pariyojana and Dedicated Freight Corridors are pivotal for transforming India's logistics landscape by improving connectivity, reducing costs, and enhancing multi-modal integration. Together, these initiatives aim to propel India towards achieving its vision of becoming a $5 trillion economy by 2027 and a global manufacturing hub.