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13 Mar 2025
GS Paper 1
Current Affairs
Day 10: Evaluate the impact of the PM GatiShakti National Master Plan on India’s logistics, industrial corridors, and multimodal connectivity. How can it accelerate economic growth and infrastructure development?
Approach
- Define PM GatiShakti’s role in connectivity and logistics.
- Highlight cost reduction, efficiency, and investment impact.
- Conclude suitably.
Introduction
The PM GatiShakti National Master Plan (NMP), launched on October 13, 2021, aims to integrate infrastructure development, reduce logistics costs, and improve multimodal connectivity. By bringing 16 ministries together, the initiative ensures efficient planning and execution of infrastructure projects, thereby boosting economic growth and industrial competitiveness.
Body
Impact on Logistics Efficiency
- India’s logistics costs (13-14% of GDP) are higher than the global average (8-9%). GatiShakti aims to lower costs through:
- A unified digital platform for ministries to coordinate infrastructure projects and avoid duplication.
- GIS-based route optimization, ensuring faster and cost-efficient movement of goods.
- Port efficiency improvements:
- Container dwell time reduced to 3 days (vs. USA: 7 days, Germany: 10 days).
- Turnaround time at Indian ports improved to 0.9 days (vs. USA: 1.5 days, Australia: 1.7 days).
- By streamlining logistics and enhancing trade facilitation, India’s global competitiveness in exports is significantly improved.
Strengthening Industrial Corridors & Economic Zones
- PM GatiShakti integrates industrial corridors and economic clusters to attract investments and enhance productivity.
- Aligned with the National Infrastructure Pipeline (NIP) to prioritize and fund infrastructure projects.
- Key industrial clusters supported:
- Textile hubs
- Pharmaceutical zones
- Defence corridors
- Electronic parks
- Agri & Fishing zones
- Improved infrastructure reduces production costs, making Indian businesses more competitive.
- By developing world-class industrial corridors, India can boost FDI, expand manufacturing, and enhance the ‘Make in India’ initiative.
Enhancing Multimodal Connectivity
- Multimodal integration ensures seamless movement of goods across road, rail, air, and water networks:
- Railways: Expansion of Dedicated Freight Corridors (DFCs) to reduce dependency on roads.
- Roadways: Bharatmala project ensures efficient highway connectivity to industrial hubs.
- Ports & Waterways: Sagarmala and Inland Waterways projects align with logistics hubs for seamless cargo movement.
- Air Transport: UDAN scheme integrates air cargo into the supply chain, benefitting high-value and perishable goods.
- By enhancing connectivity across transport modes, logistics bottlenecks are minimized, leading to faster, cost-effective freight movement.
Accelerating Economic Growth & Infrastructure Development
- Boosting Investment & Job Creation
- Better logistics attracts private and foreign investments.
- Infrastructure expansion creates jobs in construction, transportation, and warehousing.
- Reducing Carbon Footprint
- Shifting freight from road to rail & waterways lowers carbon emissions.
- GIS mapping ensures optimal resource use and sustainable development.
- Faster Project Execution
- 62+ Network Planning Group (NPG) meetings have accelerated approvals and minimized project delays.
- Satellite-based real-time monitoring ensures timely completion.
- Contribution to the $5 Trillion Economy Goal
- Reduces supply chain inefficiencies, making India an attractive global investment destination.
- Improves the ease of doing business by streamlining approvals and infrastructure planning.
Conclusion
PM GatiShakti is a game-changer in infrastructure planning, logistics, and industrial development. By reducing costs, improving connectivity, and enhancing project execution, it makes Indian businesses globally competitive. As India moves towards its $5 trillion economy goal, GatiShakti will play a crucial role in unlocking new economic opportunities and ensuring long-term sustainable development.
