Gati Shakti: A much-needed fast track to development

News: Gati shakti master plan would help India to converge its infrastructure spending.

What is the Gati shakti master plan?

What are the past initiatives to boost infrastructure?

Some of the mega initiatives include the Sagarmala and Bharatmala projects, the establishment of the National Investment and Infrastructure Fund, revisiting Public-Private Partnership (PPP) models on the lines of the Kelkar Committee recommendations, etc.

Other initiatives include Delhi-Mumbai Industrial Corridor (DMIC), the Bengaluru-Mumbai Economic Corridor (BMEC), the Chennai-Bengaluru Industrial Corridor (CBIC), and others.

What are the challenges faced by Infrastructure projects despite various measures?

According to the World Economic Forum’s Global Competitiveness Report 2019, India was ranked 70th. On utility infrastructure, India’s rank was 103rd which was inferior to many countries like China, South Korea, Malaysia, Indonesia, Thailand and Vietnam.

This is because the infrastructure sector is facing the following challenges,

1. Increase in the supply-demand gap, 2. Inadequate investment, 3. Increasing dependence on the private sector, 4. An underdeveloped financial sector, 5. The infrastructure sector falls under various ministries and departments which have their own priorities, and above all 6. Lack of synergy among different infrastructure sectors, ministries and departments.

All these issues pose challenges to India’s dream to be a five trillion economy with an enhanced share of manufacturing in GDP.

How Gati Shakti will resolve the challenges faced by the infrastructure sector?

Gati Shakti will help in realising the goal of the proposed national logistics policy. The Draft National Logistics Policy (2019) aims to reduce the logistics cost from 13-14% to 10%.

Source: This post is based on the article ”Gati Shakti: A much-needed fast track to development” published in Indian Express on 21st December 2021.