PM Gati Shakti: Transforming Infra & Connectivity

  Sansad TV   Mar 7, 2025  Add to Reading List
PM Gati Shakti: Transforming Infra & Connectivity

Progress of the PM Gati Shakti National Master Plan

Launched in 2021, the PM Gati Shakti National Master Plan is a pioneering digital platform designed to bring together multiple ministries, enabling coordinated infrastructure development across India. Its aim is to foster improved connectivity for people, goods, and services by integrating various modes of transport, enhancing last-mile connectivity, and significantly reducing travel time.

Key Features and Achievements:

  • Integrated Connectivity: The plan integrates infrastructure development across diverse sectors, from railways to roadways, ensuring synchronized project execution.

  • Key Infrastructure Projects:

    • Bharatmala: A comprehensive national highway improvement scheme.
    • Sagarmala: Focuses on enhancing port infrastructure and coastal development.
    • Inland Waterways: Promotes efficient waterway transport for goods.
    • UDAN: Aims to improve regional air connectivity, connecting smaller cities with major hubs.

  • Collaboration Across Ministries: The initiative has successfully brought together 44 central ministries and 36 states/UTs, establishing robust protocols for collaboration and data accuracy. It covers sectors like education, healthcare, rural development, disaster management, and more.

Noteworthy Outcomes:

  • Road Transport: Over 8,891 kilometers of new roads have been planned using the platform.
  • Railway Projects: The Ministry of Railways mapped out more than 27,000 kilometers of railway tracks, with substantial increases in final location surveys (FLS), from 57 in FY 2021 to 449 in FY 2022.
  • Petroleum and Gas: A digital overhaul of the route survey process in the Ministry of Petroleum reduced survey report times from several months to just one day.
  • Renewable Energy: The Green Energy Corridor between Leh and Kaithal, part of a 13 GW renewable energy project, aims to boost India's green energy capacity.
  • State-level Integration: A beta version of the District Master Plan portal was launched to facilitate district-level planning in 28 aspirational districts.

Key Initiatives to Strengthen India's Logistics Sector

India’s logistics sector has seen transformative changes through several key initiatives:

  • National Logistics Policy (NLP) (2022): This strategic policy aims to lower logistics costs, improve infrastructure, and elevate India’s position in the World Bank’s Logistics Performance Index (LPI).

  • Unified Logistics Interface Platform (ULIP): ULIP integrates 33 logistics systems across 10 ministries, enabling real-time cargo tracking and seamless data exchange, fostering transparency.

  • Logistics Data Bank (LDB): This RFID-based tracking system enhances visibility into the movement of cargo, improving supply chain management by tracking containers across ports, railways, and highways.

  • Multi-Modal Logistics Parks (MMLPs): These parks serve as hubs for the seamless transfer of goods between different transportation modes, improving efficiency by offering storage, warehousing, and other value-added services.

  • Dedicated Freight Corridors (DFC): The Western and Eastern DFCs are focused on improving freight transport efficiency, decongesting current rail networks, and speeding up movement, especially for bulk industries.

  • Logistics Ease Across Different States (LEADS): A survey that ranks states based on logistics efficiency, encouraging healthy competition and driving improvements in infrastructure.

  • Gati Shakti Sanchar Portal: This portal streamlines the Right of Way (RoW) approvals, speeding up the deployment of telecom infrastructure necessary for digital logistics solutions.

  • 5G Rollout: With 5G services expanding rapidly, it will enable more efficient logistics operations, from real-time tracking to the deployment of autonomous vehicles, with 41,000 mobile towers planned for rural areas to enhance connectivity.

Challenges Facing India's Logistics Sector

Despite significant strides in infrastructure development, several challenges continue to hinder India's logistics sector:

  • High Logistics Costs: Logistics costs in India are around 13-14% of GDP, much higher than countries like Japan or Germany, where it hovers between 8-10%. This discrepancy reduces the global competitiveness of Indian products.

  • Fragmented Market: More than 90% of India's logistics sector is unorganized, leading to inefficiencies, poor coordination, and difficulties in adopting technology.

  • Outdated Infrastructure: While improvements have been made, there are still significant bottlenecks like congested ports, outdated rail networks, and poorly maintained roads, which increase delays and costs.

  • Limited Multimodal Connectivity: India's transportation system is still heavily reliant on road transport, with railways and waterways underutilized, leading to inefficiencies and higher costs.

  • Warehousing Shortages: There is a lack of modern warehousing, especially in smaller cities, and cold chain infrastructure is insufficient, affecting perishable goods and adding to the logistical burden.

  • Last-Mile Delivery Hurdles: Challenges like urban congestion, poor infrastructure, and inefficient addressing systems escalate last-mile delivery costs and delays.

  • Regulatory Barriers: Multiple and inconsistent regulations across states slow down the progress of logistics infrastructure projects, adding complexity to coordination and approvals.

  • Skill Gaps: While the logistics sector is one of India’s largest employers, there is a shortage of skilled workers, particularly in supply chain management, technology adoption, and warehousing.

  • Environmental Impact: The logistics sector is a major emitter of greenhouse gases, with road transport being the largest contributor. The sector faces challenges in adopting sustainable practices, which are crucial for meeting India's climate goals.

Future Outlook: Key Areas for Improvement

To ensure the continued growth and efficiency of India's logistics sector, the following focus areas are essential:

  • Develop Multimodal Transport Networks: There must be a stronger emphasis on building integrated networks that combine road, rail, air, and water transport. Expanding dedicated freight corridors and enhancing port infrastructure will be critical.

  • Embrace Technological Advancements: The sector should adopt advanced technologies such as AI, IoT, and blockchain to streamline operations, improve transparency, and reduce costs.

  • Simplify Regulatory Processes: The government should introduce streamlined, single-window clearances for logistics projects and create a unified regulatory framework to reduce delays and encourage faster development.

  • Boost Cold Chain Infrastructure: Investments in refrigerated transport and modern cold storage facilities should be prioritized, particularly for sectors like food and pharmaceuticals, to reduce wastage and ensure timely deliveries.

  • Encourage Private Sector Participation: Public-private partnerships (PPP) can play a significant role in scaling up logistics infrastructure, especially in areas like warehousing and cold storage.

  • Focus on Skill Development: The government should invest in vocational training and skill development programs that target critical areas like supply chain management, technology integration, and warehousing.

  • Promote Sustainability: Green logistics practices, such as using electric vehicles for last-mile delivery and adopting clean energy in warehouses, should be incentivized to help meet India’s climate commitments.

By addressing these challenges and continuing its focus on multimodal connectivity, technological integration, and environmental sustainability, India can strengthen its logistics sector and achieve higher global competitiveness.