India to Strengthen Logistics Sector: Key Highlights

Pradhan Mantri (PM) Gati Shakti - National Master Plan is a transformative initiative by the Government of India that aims to enhance the efficiency and competitiveness of the country's logistics sector. It aims to do so via seamless integration of various modes of transportation, enhanced infrastructure, digitalization, and policy reforms.

Gati Shakti is a pivotal step taken by the Government of India, recognizing the crucial role of logistics in the country's economic growth. By addressing key challenges and leveraging strategic interventions, it aims to enhance supply chains, boost trade and promote seamless movement of goods, ultimately driving India's development agenda.

Aim and Vision of the Policy

The goal of the PM Gati Shakti policy is to revolutionize India's logistics sector by focusing on critical bottlenecks in the system and implementing strategic reforms for more efficiency. It aims to optimize the movement of goods across the country, enhance supply chain efficiency, and propel economic growth.

• The policy is a transformative approach for economic growth and sustainable development that is driven by seven energies – roads, railways, airports, ports, mass transport, waterways, and logistics infrastructure.
• This policy envisions a comprehensive framework that integrates various modes of transportation, improves infrastructure, promotes digitalization, and streamlines regulatory processes.
• The vision is to establish a world-class logistics ecosystem in India that is efficient, cost-effective, and globally competitive with a seamless and integrated logistics network facilitating smooth movement of goods, reducing logistics costs, and promoting sustainable development.
• It aims to position India as a preferred logistics hub, attracting investments, boosting trade, and generating employment opportunities across the sector.

To achieve this vision, the policy aims to focus on the following key objectives:

Infrastructure Development

The policy emphasizes the development of robust infrastructure, including roads, railways, airports, and ports, to ensure efficient connectivity and smooth flow of goods. It aims to bridge the gaps in the infrastructure and enhance multimodal connectivity to facilitate faster and cost-effective logistics operations.

• Digitalization and Technology Adoption

PM Gati Shakti aims to leverage technology and digital platforms to enhance transparency, reduce paperwork, and improve the overall efficiency of logistics operations. It envisions the development of a single-window online portal for seamless coordination among stakeholders, real-time tracking of consignments, and data-driven decision-making.

• Streamlining Regulatory Framework

The policy aims to streamline and simplify the regulatory framework governing logistics operations. It seeks to reduce regulatory bottlenecks, eliminate unnecessary paperwork, and promote a business-friendly environment. The policy envisions the development of standardized operating procedures, harmonization of regulations across different states, and establishment of a robust grievance redressal mechanism.

• Skill Development and Capacity Building

PM Gati Shakti recognizes the importance of skilled manpower in the logistics sector. The policy envisions the promotion of skill development initiatives, training programs, and capacity-building measures to create a pool of skilled professionals capable of handling modern logistics operations.

• Sustainability and Environment

The policy emphasizes sustainable logistics practices and aims to reduce the environmental impact of logistics operations. It envisions the adoption of eco-friendly technologies, efficient use of energy resources, and promotion of green logistics practices to minimize carbon emissions and contribute to a greener and more sustainable future.

Pillars of PM Gati Shakti

PM Gati Shakti is based on six pillars that form the core principles of the policy – comprehensiveness, prioritization, optimization, synchronization, analytical, and dynamic.

• Comprehensiveness: The policy aims to bring together existing and planned initiatives of various Ministries and Departments under one centralized portal. This comprehensive approach allows for better visibility and critical data sharing, enabling effective planning and execution of projects.
• Prioritization: Through cross-sectoral interactions, different Departments can prioritize their projects, ensuring efficient resource allocation and project management.
• Optimization: The National Master Plan helps identify critical gaps and assists ministries in planning projects. It enables the selection of the most optimal routes for transportation, considering factors like time and cost.
• Synchronization: PM Gati Shakti addresses the issue of departmental silos and lack of coordination by synchronizing the activities of various ministries and departments. It promotes holistic coordination and collaboration at different layers of governance.
• Analytical: The policy provides a centralized platform with GIS-based spatial planning and analytical tools, offering better visibility and comprehensive data. This enables informed decision-making and monitoring of projects.
• Dynamic: Ministries and Departments can visualize, review, and monitor cross-sectoral projects through the GIS platform. Satellite imagery provides periodic on-ground progress updates, allowing for timely identification of interventions and updating of the master plan.

PM Gati Shakti Plan Goals

• The roadways capacity shall be increased as the national highway structure is estimated to touch 2 lakh kms.
• 200 new airports, heliports and water aerodromes have been planned to give aviation a significant boost.
• By FY2024-25, the Railways transport cargo capacity will be increased to approximately 1,600 tons.
• There shall be more ease when it comes to access to electricity as the transmission network is envisioned to be increased to 454,200 circuit kms.
• By FY2024-25, the capacity for renewable energy is to be increased to 225 GW.
• The gas pipeline network shall complete 17,000 kms by FY2024-25.
• All villages to have 4G connectivity by FY2024-25.
• 20 new mega food parks to be built.
• Two defense and 11 industrial corridors to be built in Tamil Nadu & Uttar Pradesh.
• 202 fishing clusters/harbors/landing centers.

Projects under PM Gati Shakti

The Government has identified 101 ports and shipping projects for development under PM Gati Shakti mission. These projects are estimated to cost INR 60,872 crores.

 

State	Number of Projects	Estimated Cost (in INR)
Andhra Pradesh	13	5,871.05
Goa	12	929.96
Gujarat	19	2,0399.15
Jharkhand	2	345.9
Karnataka	10	3,658.13
Kerala	3	109.76
Maharashtra	13	9,955.85
Odisha	7	5,528.12
Puducherry	2	309
Tamil Nadu	12	12,178.8
Uttar Pradesh	2	355.96
West Bengal	6	1,230.33

Note: The National Highways network is to be expanded by 25,000km in 2022-23.

Digital Infrastructure and Technology Integration

The PM Gati Shakti policy recognizes the critical role of digital infrastructure and technology integration in transforming the logistics sector.

• It emphasizes the adoption of emerging technologies such as IoT, AI, blockchain, and data analytics to enhance supply chain visibility, optimize operations, and enable seamless information sharing among stakeholders.
• It aims to develop robust digital platforms that ensure data security and privacy while promoting technology adoption across the logistics ecosystem.
• By leveraging digital advancements, the policy seeks to create a technologically advanced and digitally enabled logistics sector, fostering efficiency, transparency, and innovation in the movement of goods and services across the country.

Conclusion

The PM Gati Shakti - National Logistics Policy has the potential to revolutionize the logistics market, reduce costs, boost trade facilitation, attract investments, and create several employment opportunities. However, to successfully implement this policy, collaborative efforts must be made by government agencies, private sector entities and different industry associations.