PM Gati Shakti Scheme Boosts India's Infrastructure and Economic Growth: Morgan Stanley Report

The PM Gati Shakti scheme, analyzed in a recent report by Morgan Stanley, has greatly boosted India’s infrastructure and spurred economic growth.

This initiative, launched by Prime Minister Narendra Modi in October 2021, brings together 16 government ministries, including Railways and Highways, on a digital platform. Its goal is to improve how roads, railways, airports, ports, and other transport systems work together to drive India’s economy forward.

The report shows that India has significantly improved its infrastructure over the past decade by investing more effectively. It predicts that investment in infrastructure will keep increasing, from 5.3% to 6.5% of the country’s GDP by FY29, with an annual growth rate of 15.3%. This higher investment is expected to lead to sustained economic growth by boosting productivity.

PM Gati Shakti Scheme Boosts India's Infrastructure and Economic Growth: Morgan Stanley Report — PM Gati Shakti Scheme Boosts India’s Infrastructure and Economic Growth: Morgan Stanley Report

According to the report, India’s physical infrastructure, especially in terms of logistics, is now comparable to China’s when considering the size of their economies. For example, Indian ports are becoming more efficient, with containers spending an average of only three days there compared to longer times in many other countries.

Under the PM Gati Shakti scheme, progress has been made with 101 projects identified for ports and shipping sectors, totaling Rs 60,900 crore.

By April 2023, 26 projects worth Rs 8,900 crore were completed, while 42 projects worth Rs 15,340 crore are currently being developed, and 33 projects worth Rs 36,640 crore are being implemented. These investments are aimed at improving connectivity and efficiency in maritime transportation.

Additionally, other initiatives like Sagarmala and the development of National Waterways are also contributing to India’s infrastructure growth. These projects are focusing on improving transportation for both goods and passengers across the country.

PM Gati Shakti’s comprehensive strategy and collaborative approach among ministries are positioning India to enhance its infrastructure significantly and support sustainable economic development on a global scale.