India's Rising Infrastructure Investment
A recent report by Morgan Stanley highlights India's
significant progress in infrastructure development, particularly due to the PM
Gati Shakti scheme. The report projects a robust increase in infrastructure
investment, rising from 5.3% to 6.5% of GDP by 2029 (F29). This growth, driven
by a strong 15.3% CAGR, is expected to reach a cumulative total of USD 1.45
trillion over the next five years. This investment is anticipated to foster
high productive growth and enhance overall investment rates.
PM Gati Shakti: Transforming Infrastructure Landscape
Morgan Stanley commends the PM Gati Shakti scheme
for its role in streamlining infrastructure development. The scheme integrates
16 ministries for coordinated planning, focusing on multi-modal connectivity
and logistics efficiency. This approach has yielded tangible results in project
completion and sectoral development.
Improved Logistics Performance
The report cites the World Bank's Logistics Index
Report 2023 to showcase India's improved logistics performance. Notably, the
average container dwell time in India is just three days, compared to four days
in countries like the UAE and South Africa, seven days in the USA, and ten days
in Germany. Additionally, Indian ports boast a turnaround time of 0.9 days,
outperforming the USA (1.5 days), Australia (1.7 days), and Singapore (1.0
day).
PM Gati Shakti in Action
Launched in October 2021, PM Gati Shakti is a
digital platform that fosters collaboration between 16 ministries, including
Railways and Roadways. This platform facilitates integrated planning and
coordinated implementation of infrastructure connectivity projects. The scheme
focuses on multi-modal connectivity, aiming to provide seamless movement of
people, goods, and services across various transportation modes. It encompasses
seven key sectors: roads, railways, airports, ports, mass transport, waterways,
and logistics infrastructure.
Early Signs of Success
According to the Morgan Stanley report, initiatives
under PM Gati Shakti are already delivering results. In the ports and shipping
sectors alone, 101 projects worth Rs 609 billion have been identified for
implementation. As of April 2023, 26 projects (Rs 89 billion) have been
completed, 42 projects (Rs 153.4 billion) are under development, and 33
projects (Rs 366.4 billion) are under implementation. Notably, 14 projects
worth Rs 205.4 billion were expected to be completed by December 2023.
The Ministry of Ports, Shipping, and Waterways
(MoPSW) is further implementing a Comprehensive Port Connectivity Plan in
coordination with other relevant ministries. Additionally, the report
highlights the success of the Sagarmala program, with 220 projects (Rs 1.12
trillion) completed, 231 projects (Rs 2.21 trillion) under implementation, and
351 projects (Rs 2.07 trillion) at the evaluation stage.
Development activities have also begun in the first
13 of the 26 identified viable National Waterways.
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