Global investment bank and financial company Morgan Stanley has said that PM Gati Shakti Yojana has been successful in giving a new impetus to India’s infrastructure development and multi-modal connectivity across highways, railways and ports, thereby boosting economic growth.
According to the report, India has strongly expanded its infrastructure over the past decade, including through greater investment that is better targeted and potentially more productive.
“We expect India’s infrastructure investment to grow from 5.3 per cent of GDP in FY24 to 6.5 per cent of GDP by FY29. In effect, this means that infrastructure investment is expected to register a robust CAGR of 15.3 per cent, resulting in cumulative spending of US$1.45 trillion over the next five years. In our view, this will help raise the investment rate, leading to a sustained period of high productive growth.”
Interestingly, the report also states that “contrary to popular belief, India’s physical infrastructure is in better shape than China when viewed in terms of gross domestic product (GDP) gap.”
The report cited the World Bank’s Logistics Index Report, 2023, which said the average dwell time of a container at Indian ports was three days, while it was four days in countries like the UAE and South Africa, seven days in the US and 10 days in Germany.
The “Turnaround time” of Indian ports has reached 0.9 days, which is better than the US (1.5 days), Australia (1.7 days), Singapore (1.0 day) etc. 6. In F24, the overall cargo growth of ports was 7 per cent, with 53 per cent of cargo handled by major ports (government-owned).
Prime Minister Narendra Modi launched the PM Gati Shakti National Master Plan for infrastructure development in October 2021. It brings together 16 ministries, including railways and highways, on a digital platform for integrated planning and coordinated implementation of multi-modal connectivity projects. It is touted as a transformational approach to economic growth and sustainable development, with roads, railways, airports, ports, mass transit, waterways and logistics infrastructure forming the “7 engines” to drive the economy together.
According to a Morgan Stanley report, the initiatives taken under PM Gati Shakti are yielding results. So far, 101 projects worth a total of Rs 60,900 crore have been identified for implementation in the ports and shipping sectors under the PM Gati Shakti scheme.
As of April 2023, 26 projects costing Rs 8,900 crore have been completed, 42 projects costing Rs 15,340 crore are under development, and 33 projects costing Rs 36,640 crore are under implementation.
The Ministry of Ports, Shipping and Waterways (MoPSW) is also implementing a comprehensive Port Connectivity Plan in coordination with the Ministries of Highways and Railways.
Under the Sagarmala programme, 220 projects worth Rs 1.12 lakh crore have been completed and 231 projects worth Rs 2.21 lakh crore are under implementation, while 351 projects worth Rs 2.07 lakh crore are under appraisal stage, the Morgan Stanley report said.
Similarly, National Waterways are also being developed as a more efficient and environmentally friendly mode of transport for both goods and passengers.
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