According to international investment bank and financial services provider Morgan Stanley, India’s infrastructure development and multi-modal connectivity through ports, trains, and highways have benefited from the PM Gati Shakti initiative, which has accelerated economic growth.
According to the report, over the past ten years, India has significantly increased its infrastructure spending, with more investments that are also more focused and may be more fruitful.
“We expect India’s infrastructure investment to steadily increase from 5.3 per cent of GDP in FY24 to 6.5 per cent of GDP by FY29. Indeed, this implies that infrastructure investments are expected to register a strong 15.3 per cent CAGR, resulting in cumulative spending of USD 1.45 trillion over the next five years. In our view this will help to lift the investment rate, leading to a sustained period of high productive growth.”
Interestingly, the report also states that “contrary to popular perception, India’s physical infrastructure scale already compares favourably to China’s when viewed in the context of GDP differential.”
A World Bank Logistics Index Report from 2023 is used in the report, which states that the average Container Dwell Time in Indian ports was three days, while it was four days in the UAE and South Africa, seven days in the USA, and ten days in Germany.
Indian Ports’ “turnaround time” of 0.9 days is faster than that of the United States (1.5 days), Australia (1.7 days), Singapore (1.0 days), and so on. 6. The total growth of cargo handled by ports in F24 was 7 pc, with large ports handling 53 pc of the cargo (government-owned).
In October 2021, Prime Minister Narendra Modi unveiled the PM Gati Shakti National master plan, which aims to enhance infrastructure. For the purpose of coordinated multi-modal connectivity project implementation and integrated planning, it unites 16 ministries, including Railways and Highways, on a digital platform. It is designed as a revolutionary strategy for sustainable development and economic progress, with roads, railroads, ports, airports, mass transit, waterways, and logistical infrastructure serving as the “7 engines” that propel the economy forward as a whole.
The Morgan Stanley Report claims that PM Gati Shakti’s policies are paying off. To date, 101 projects totaling Rs 60,900 crore have been identified for implementation in the port and shipping sectors under the PM Gati Shakti plan.
26 projects totaling Rs 8,900 crore had been finished as of April 2023; 42 projects costing Rs 15,340 crore were in the development stage; and 33 projects worth Rs 36,640 crore were in the implementation stage.
Along with the ministries of highways and railroads, the Ministry of Ports, Shipping, and Waterways (MoPSW) is putting a thorough port connectivity strategy into action.
According to the Morgan Stanley research, 220 projects totaling Rs 1.12 lakh crore have been finished under the Sagarmala program; 231 projects worth Rs 2.21 lakh crore are currently being implemented; and 351 projects worth Rs 2.07 lakh crore are currently undergoing appraisal.
Similarly, National Waterways are being developed as a more effective and environmentally responsible mode of transportation for both passengers and cargo.
