National Science Day: 28th February
PM GatiShakti National Master Plan
Part of: GS-Prelims and GS-III: Infrastructure & Economy
What is Gati Shakti Master Plan?
- It is a Rs. 100 lakh-crore project for developing ‘holistic infrastructure’.
- The plan is aimed at easier interconnectivity between road, rail, air and waterways to reduce travel time, improve industrial productivity and developing synergies towards building a more harmonised infrastructure.
- The push for infrastructure is in line with the government’s efforts to step up capital expenditure in infrastructure to promote economic growth.
- Will encompass the seven engines for multi-modal connectivity for the states with speedier implementation of development projects through technology to facilitate faster movement of people and goods through Rs 20,000 crore financed by the government to speed up this project
Aim and objective
- To reduce the logistics cost – a transformative approach, driven by roads, railways, ports, airports, mass transport, waterways and logistics infrastructure. All seven engines will pull the economy forward in unison
- Unshackle bureaucratic entanglements and end inter-ministerial silos that delay infrastructure projects and drive up costs
- Sets sectoral targets to be completed by 2024-25 in areas such as expanding national highways and increasing cargo capacity by the railway and shipping ministries
Significance: Currently, the logistics cost in India is about 13% of the GDP whereas in other developed countries it is to the extent of 8%. PM GatiShakti National Master Plan can help lower our logistics cost to one of the lowest in the world at 7-8% of GD. Government is committed to reduce the cost of logistics to ensure
- Logistics Grid: With Gati Shakti, India will be able to build an integrated, harmonised transportation and logistics grid. Such a grid will help bring down logistics & supply cost of India.
- Enhances Supply Chain Efficiency: It helps build new supply-side capacities & enhances supply chain efficiency that can set the wheels of growth in motion and move towards the ambitious mission of a $5-trillion economy
- Coordinated Governance: To have all utility and infrastructure planning under an umbrella framework will ensures coordinated planning, cut down ministerial delays, and leads to faster decision making.
- Attracts FDI: Having an umbrella framework under Gati Shakti provides clarity & stability to investors thereby attracting Foreign Direct investment into infrastructure sector.
- Scope for New Economic Corridors: Increased investment by domestic & foreign investors for new infrastructure creations open the doors for new future economic zones
- Improves Connectivity: It will ensure last-mile connectivity to economic zones in a definite timeframe.
- Increased Competitiveness of exports: Supply chain inefficiencies add to product costs, and thus, run the risk of making our exports uncompetitive vis-à-vis other international export players. Dedicated infrastructure development under Gati Shakti, therefore, improves India’s infrastructure capacity and global export competitiveness with regard to manufacturing in India.
- Data for Policy Making: The geographic information system (GIS)-enabled digital platform under Gati Shakti will provide useful data — including a region’s topography, satellite images, physical features, maps of existing facilities and so on — for ministries, thus, helping them save on funds and time for approvals.
- Enhances India’s share in cargo business: India’s share in the international cargo business was worth ₹1,686 crore in 2019-20, which rose to ₹2,644 crore in 2020-21 (a 57% increase). Having a harmonised & integrated logistics hub will help increase this share.
PM Gati-Shakti will ensure true public-private partnership in infrastructure creation from infrastructure planning to development and utilization stage
News Source: PIB