An analysis of Gati Shakti

The PM has launched the Gati Shakti, to speed up execution of National Infra Pipeline

 An analysis of Gati Shakti

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• The story: The launch of the Gati Shakti master plan is a step forward in Modi's Atmanirbhar Bharat vision. Modi is credited with reforms such as “One Nation One Market” to “One Sun, One World, One Grid” to “One Nation, One Ration Card”. Modi wants a unified, all-encompassing approach. Critics say this amounts to more centralisation, but Modi continues unflustered.
• Gati Shakti vision: The goal is to give more power and speed to projects under the $1.5-trillion National Infrastructure Pipeline (NIP). This will be done by sharing resources and developing synergies towards building a more harmonised infrastructure. It will ensure last-mile connectivity to economic zones in a definite timeframe. The aim is to improve India’s productive capacity and global competitiveness with regard to manufacturing in India.
• Pandemic shock: The Covid-19 pandemic dealt a body blow to targets across ministries, slowing their plans a lot. The broad goal of making India a $5-trillion economy stood as imagined. To achieve that, it was necessay to build new supply-side capacities rapidly and optimally.
• Problems of Indian infra sector: India’s infrastructure sector was always marred by interministerial delays, multiple layers of stakeholders, and the culture of working in silos. This led to confused decision-making, time and cost overruns, and a staggered pace for infrastructure-led growth.

1. In the execution of airport projects, coordinated planning is critical since many factors have to be taken into consideration — hundreds of crossings across power lines, pipelines and water bodies.
2. An initiative to consolidate infrastructure projects in specific corridors will help various ministries plan projects side by side without getting entangled in cumbersome approval processes.
3. The geographic information system (GIS)-enabled digital platform under Gati Shakti will be a useful source of information for ministries — including a region’s topography, satellite images, physical features, maps of existing facilities and so on — helping them save on funds and time for approvals.

• Integrated grid: The promise is that with Gati Shakti, India may get to build an integrated, harmonised transportation and logistics grid. Today, logistics and supply chain costs account for 12% to 13% of the Gross Domestic Product (GDP), compared to the global average of 8%. An excessive dependence on transportation by road and the under-utilisation of waterways, air and rail networks has raised costs for the supply chain industry. These inefficiencies add to product costs, and run the risk of making Indian exports uncompetitive vis-à-vis others.

1. A multimodal transportation network will not only provide manufacturers faster access to domestic and international markets, but will have a multiplier effect on the economy too.
2. It will ensure that infrastructure investments flowing into the country are better utilised by our economic hubs, and open the doors for new future economic zones.
3. The eventual pay-off of a Rs.100-lakh crore Gati Shakti project will be large, starting a virtuous cycle of investments, large employment opportunities, aggregate demand, and thus economic growth.

• Freight: India has only touched the tip of the iceberg. A large part of freight comprises bulk material which could be more economically served by air. Many centres such as Dubai are making use of concepts like sea-air, where cargo is initially transported by sea freight, and later by air freight. This is proven to have led to significant savings in transit time and costs. Gati Shakti could pave the way for a culture of multimodality, where sea, road, rail and air transport modes do not compete with each other, but rather, complement each other.
• Summary: The Gati Shakti vision is a step that will form the basis of the PM’s vision of “Amrut Kaal”— the 25-year period till India celebrates 100 years of its Independence.
• EXAM QUESTIONS: (1) Explain the various components of the National Infrastructure Pipeline. Who is funding what? (2) What are the five ideas and components behind the Gati Shakti plan? Explain analytically.

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