PM Gati Shakti Yojana
The Indian economy is on track for fast expansion, and updating the country’s infrastructure has become critical. To meet the expanding needs of a dynamic economy and the necessity for effective logistical networks, the Indian government established the PM Gati Shakti Yojana, a National Master Plan for Multimodal Connectivity. This ambitious program, backed by Prime Minister Narendra Modi, seeks to streamline infrastructure development across sectors, lower logistical costs, and build a more connected transportation network in India.
PM Gati Shakti Yojana, which was launched in October 2021, is a comprehensive strategy that aims to improve synergy between various forms of transportation—roads, railroads, airways, and waterways—by encouraging integrated planning and coordinated implementation. This blog digs into the PM Gati Shakti Yojana’s main goals, components, and repercussions, offering insight on how it intends to reshape India’s infrastructural landscape and drive economic growth.
1. Background and Need for PM Gati Shakti Yojana
While India’s infrastructure sector is large, it is frequently criticized for inefficiencies and fragmentation. Rapid urbanization and increased trade and commerce have exposed flaws in India’s transportation and logistics networks. Some of the main challenges are:
High Logistical Costs: India’s logistics costs are 13-14% of GDP, much higher than the worldwide average of 8-9%. This reduces the worldwide competitiveness of Indian goods.
Fragmented Infrastructure: In India, infrastructure development has frequently been fragmented, with individual ministries and departments focused on their respective domains without an overarching plan for seamless integration.
Slow Project Execution: Delays in project execution due to bureaucratic obstacles, land acquisition issues, and insufficient coordination among numerous authorities have hampered infrastructure development.
Recognizing these difficulties, the PM Gati Shakti Yojana intends to provide a strong foundation for integrated infrastructure development, expediting project delivery and lowering logistical expenses.
2. Key Goals of PM Gati Shakti Yojana
The Gati Shakti Yojana is established with three main goals that are crucial to improving India’s transportation and logistics landscape:
a) Sector-Wide Integrated Planning
The fundamental goal of PM Gati Shakti is to dismantle the old silos that have hampered infrastructure development. The program aims to encourage a more unified approach to infrastructure development by integrating planning and implementation across diverse sectors, including roads, railroads, airports, ports, public transit, waterways, and logistics infrastructure.
This multimodal integration will ensure that all means of transportation collaborate to improve connection, reduce redundancies, and prevent delays. For example, road and rail networks should be seamlessly linked to airports and ports to provide faster and more efficient flow of products and people.
b) Reducing logistics costs
One of the primary goals of PM Gati Shakti is to lower India’s high logistics costs. The plan intends to reduce logistics costs to a globally competitive level of 8-9% of GDP by streamlining transportation networks, reducing bottlenecks, and boosting last-mile connectivity. This reduction will be critical in making Indian exports more competitive, promoting the “Make in India” effort, and enhancing the ease of doing business.
c) Accelerating infrastructure development
The initiative aims to speed infrastructure construction by utilizing cutting-edge technologies and digital tools. The utilization of Geographic Information System (GIS)-based technologies, real-time project monitoring, and data analytics will be critical in ensuring that projects are finished on time and under budget.
d) Sustainable Development.
PM Gati Shakti relies heavily on guaranteeing long-term infrastructure development that conforms with environmental aims. The plan helps India meet its climate change obligations by encouraging the use of greener technology, increasing transportation energy efficiency, and lowering carbon emissions.
e) Creation of jobs and economic growth
As India cranks up its infrastructure development initiatives, the Gati Shakti Yojana is intended to create millions of employment in construction and logistics. Furthermore, enhanced infrastructure will boost economic activity, particularly in rural and semi-urban areas, helping to achieve inclusive growth.
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3. Key Components of PM Gati Shakti Yojana
The PM Gati Shakti Yojana consists of numerous components that work together to accomplish the objective of a modern, integrated infrastructure network. These include the following:
a) Integration of multiple modes of transportation
The Gati Shakti Yojana’s main feature is the integration of numerous means of transportation to allow the smoother and faster movement of products and people. The effort intends to reduce logistics inefficiencies by connecting highways, trains, airports, and ports. This will also enable for more efficient use of transportation modes based on cost-effectiveness and the type of products being transported.
b) Unified Logistics Interface Platform (ULIP).
The Gati Shakti framework includes the construction of the Unified Logistics Interface Platform (ULIP), which will put all parties in the logistics chain—government agencies, business entities, and transportation operators—on a single platform. This interface will enable smooth information interchange, efficient coordination, and improved decision-making, resulting in faster and more reliable logistics operations.
c) GIS-based planning.
The Gati Shakti Master Plan uses advanced Geographic Information System (GIS) capabilities for infrastructure design. This technology will provide real-time data on current infrastructure, allowing planners to spot gaps and construct projects in a more coordinated and effective manner. GIS-based tools will also help to track project progress and ensure timely completion.
d) National Infrastructure Pipeline(NIP)
The Gati Shakti Yojana operates alongside the National Infrastructure Pipeline (NIP), which was established in 2020 to fund large-scale infrastructure projects across India. The NIP has identified over 7,000 projects costing more than INR 100 lakh crore (about $1.35 trillion). These initiatives span sectors like as energy, transportation, urban development, and telecommunications, and Gati Shakti serves as the framework for their coordinated implementation.
e) Special focus on key sectors
PM Gati Shakti emphasizes strengthening infrastructure in important industries, including:
Railways: Extending freight corridors, building dedicated freight terminals, and modernizing rail networks.
Roads and roads: Construction of new expressways and roads, with an emphasis on lowering travel time and enhancing connectivity to rural and industrial locations.
Airports: Creating new airports, extending existing ones, and enhancing air connectivity in Tier II and Tier III cities.
Ports and Waterways: Improving ports and promoting inland waterways to increase cargo handling capacity and minimize reliance on road and rail transportation for freight movement.
4. Implications of PM Gati Shakti Yojana
The PM Gati Shakti Yojana has far-reaching implications for India’s economy, infrastructure development, and international trade. Some of the most notable impacts include:
a) Improving India’s competitiveness.
The Gati Shakti program is aimed to boost the worldwide competitiveness of Indian commodities by lowering logistical costs and enhancing transportation network efficiency. Improved infrastructure will help not only exports, but also domestic goods and services, lowering inflation and increasing consumer spending.
c) Promoting Industrial Growth
The plan will also play an important role in promoting industrial growth, particularly in manufacturing and logistics. The Gati Shakti Yojana’s industrial corridors, special economic zones, and freight corridors would improve industries’ access to vital markets, resulting in increased productivity and economic growth.
c) Lowering Regional Disparities
Transportation infrastructure development in underserved areas, particularly in rural and semi-urban areas, will help to bridge the urban-rural divide in India. Improved connectivity will create new economic opportunities, enhance agricultural exports, and provide speedier access to key services.
d) Creating jobs
Millions of jobs are predicted to be created across multiple sectors as infrastructure expenditure increases and projects are rapidly implemented. The Gati Shakti Yojana would offer job possibilities for skilled and unskilled workers, ranging from construction workers to logistics specialists.
e) Environmental sustainability.
The Gati Shakti Yojana promotes multimodal transportation, including the use of greener and more energy-efficient modes such as waterways and railways, in line with India’s sustainability goals. The reduction in road congestion and the transition to more efficient freight transportation will help to reduce carbon emissions.
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5. Conclusion
The PM Gati Shakti Yojana represents a transformative approach to infrastructure development in India. The initiative aims to address long-standing issues of inefficiency, high logistical costs, and project delays by integrating various modes of transportation and encouraging cross-sectoral planning. As the plan takes shape, it will open up new economic opportunities, create jobs, and boost India’s global competitiveness.
PM Gati Shakti is more than just an infrastructure plan; it is a blueprint for India’s economic future, with an emphasis on sustainable development, reduced regional disparities, and the adoption of cutting-edge technology. This initiative’s successful implementation will ensure that India’s infrastructure is not only built for today, but also future-proof, capable of supporting the nation’s aspirations for decades.
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