In a recent report, Morgan Stanley has commended India’s PM Gati Shakti scheme for its significant impact on infrastructure development, marking a pivotal moment in the nation’s growth trajectory.
Launched by Prime Minister Narendra Modi in October 2021, the scheme integrates 16 key ministries, including Railways and Roadways, onto a digital platform aimed at facilitating integrated planning and coordinated implementation of infrastructure projects.
The Morgan Stanley report underscores India’s robust progress in infrastructure development over the past decade, highlighting a strategic increase in investment that is not only more targeted but also poised to enhance productivity across sectors. It predicts that India’s infrastructure investment will rise from 5.3% of GDP in F24 to 6.5% by F29, reflecting a robust 15.3% Compound Annual Growth Rate (CAGR).
Key achievements under the PM Gati Shakti scheme include significant improvements in logistics efficiency, as highlighted by the World Bank’s Logistics Index Report for 2023. For instance, India’s average Container Dwell Time at ports stands at three days, outperforming several developed nations like the USA and Germany. Moreover, the Ports’ turnaround time has reached an impressive 0.9 days, further underscoring India’s strides in enhancing operational efficiency within its logistics sector.
The scheme’s holistic approach spans “7 engines” crucial for infrastructure development: roads, railways, airports, ports, mass transport, waterways, and logistic infrastructure. This comprehensive strategy aims to provide seamless connectivity for the movement of goods, services, and people across various modes of transport, thereby bolstering economic integration and efficiency.
Initiatives under PM Gati Shakti have already yielded tangible results, with 101 projects worth Rs 609 billion identified for implementation in the ports and shipping sectors alone. These initiatives are integral to enhancing India’s port connectivity and operational capacity, driving further growth in the sector.
As India continues to implement the PM Gati Shakti scheme, its transformative impact on infrastructure development is expected to play a crucial role in positioning the nation as a global leader in economic resilience and sustainable growth. With ongoing investments and strategic initiatives, India is poised to leverage its strengthened infrastructure backbone to propel future development and prosperity across the country.