On the auspicious eve of the 75th Independence Day, a visionary project was unveiled by Prime Minister Narendra Modi – the Pradhan Mantri Gati Shakti Yojana. Embarking with an astounding budget of INR 100 lakh crore, this master plan is a paradigm shift.
It includes 16 critical ministries, with the singular aim of crafting a holistic infrastructure – one that promises to catapult India’s logistics not just into efficiency but into an era of unprecedented synergy and integration.
This blog post will brief you on how Gati Shakti Yojana, this grand scheme, is set to revolutionise logistics for eCommerce in India.
What is the PM Gati Shakti National Master Plan?
Envisioned as a transformative force, the Gati Shakti Yojana was launched on October 13, 2021, representing a leap forward in infrastructure and eCommerce logistics. It is a response to an urgent need for integrated and efficient logistics catalysing India’s economic growth, enhancing its competitive edge globally, and streamlining the efficiency of its logistics ecosystem.
It aims to establish a seamless, interconnected network of logistics and infrastructure spanning the vast expanse of India. It brings together a comprehensive database of key infrastructural elements – including trunk and utility infrastructure- along with ongoing and future projects spanning diverse infrastructure and economic ministries at the Central and State/UT levels.
Central to the Gati Shakti NMP are economic zones such as textile clusters, pharmaceutical clusters, defense corridors, electronic parks, industrial corridors, fishing clusters, and agri zones. These zones are meticulously mapped and integrated into the infrastructure planning to make Indian businesses more cost-competitive.
Moreover, the PM Gati Shakti NMP works with the National Logistics Policy, 2022, and its Comprehensive Logistics Action Plan (CLAP). While Gati Shakti focuses on developing integrated infrastructure, the National Logistics Policy addresses efficiency in services, digital systems, regulatory frameworks, and human resources.
Together, they forge a robust, data-driven decision support mechanism to reduce logistics costs and enhance logistics efficiency in India.
What are the 6 pillars of PM Gati Shakti?
1. Comprehensiveness
The cornerstone of the Gati Shakti Master Plan is its comprehensive approach to infrastructure development. The plan maps existing and proposed economic zones, creating a blueprint that aligns with India’s economic aspirations. Modern technology plays a pivotal role here, with tools like GIS (Geographic Information Systems) facilitating unified planning across various sectors. This comprehensive approach significantly impacts sectors like transportation, energy, and communication, ensuring that development in these areas is not in silos but part of a cohesive, well-thought-out strategy.
2. Prioritisation
The Gati Shakti plan brings strategic decision-making to the forefront, ensuring that resources are allocated efficiently and effectively. It aligns projects with the broader national development goals, ensuring that each initiative contributes to the overall vision of India’s growth.
3. Optimisation
Optimisation under the Gati Shakti plan is all about doing more with less. It’s about maximising resource utilisation and efficiency in infrastructure development. The plan streamlines project execution processes, reducing redundancies and enhancing the cost-effectiveness and viability of projects.
4. Synchronisation
The Gati Shakti plan emphasises unprecedented coordination across multiple ministries and departments, ensuring that their efforts are not duplicated but are synergistically aligned. The plan envisions seamless multi-modal transport networks where different modes of transportation complement rather than compete.
5. Analytics
Data-driven decision-making is central to the Gati Shakti plan, leveraging advanced tools like GIS for insightful planning and execution. This analytical approach enhances transparency and accountability in project execution, with real-time tracking and progress monitoring becoming a norm rather than an exception.
6. Dynamic
The Gati Shakti plan is dynamic. It recognizes that infrastructure planning is not a static process but needs to adapt to emerging needs and trends. This pillar of the plan emphasizes the continuous evaluation and upgrading of projects, ensuring that they remain relevant and effective in the face of changing circumstances.
Key Projects and Developments Under Gati Shakti Yojana
National Highways Network Enhancement
The Gati Shakti Yojana ambitiously aims to transform India’s national highways, enhancing the network to an unprecedented extent. The expansion goals are set to significantly increase the total length of national highways, creating new arteries of trade and connectivity across the nation. This extensive network will seamlessly integrate these highways with other modes of transportation, such as railways, waterways, and air routes.
Development of Water Aerodromes
To utilise India’s extensive water bodies, the Gati Shakti plan includes the development of water aerodromes. These airports are set to be located to enhance water-based transportation and tourism, particularly in areas that have remained underutilised due to connectivity constraints. This initiative is synergistic with coastal and inland waterways development, aiming to create a more integrated transportation system.
Airports Development
A major thrust of the Gati Shakti Yojana is constructing new airports and modernising existing ones, focusing on enhancing regional connectivity under the UDAN (Ude Desh ka Aam Nagrik) scheme. These developments are critical in bolstering domestic and international travel, making air travel more accessible and efficient.
Multi-Modal Logistics Parks
The plan also envisages the development of Multi-Modal Logistics Parks (MMLPs). These parks are conceptualised on the hub and spoke model that integrates different transportation modes into a single, efficient system. Positioned strategically across the country, they will play a pivotal role in enhancing the efficiency of cargo handling and movement.
Industrial Corridors
Under Gati Shakti Yojana, the industrial corridors will be identified and developed across various key industrial zones in India, enhancing infrastructure and connectivity. The aim is to foster manufacturing and industrial growth, creating economic zones that are well-connected and equipped with state-of-the-art facilities.
Mega Food Parks
As part of an effort to transform the agriculture and food processing industries, the Gati Shakti plan involves creating large-scale food parks in various regions. These parks are designed to minimise waste, improve food security, and strengthen the agricultural economy.
Defense Corridors
Finally, the establishment of defense corridors in Tamil Nadu and Uttar Pradesh marks a strategic move in indigenous defense production. These corridors are designed to integrate with national R&D and manufacturing, contributing to India’s self-reliance in defense technology and equipment.
The Goal of PM Gati Shakti
Streamlining Logistics and Reducing Costs
The PM Gati Shakti’s goal is to streamline India’s logistics sector, it aims to significantly reduce logistics costs, which currently stand higher than the global average, thereby enhancing the competitiveness of Indian businesses in the global market.
Integrated Multi-Modal Connectivity
A significant aspect of Gati Shakti is the development of integrated multi-modal connectivity, an expansive enhancement of national highways, railways, and air routes, along with the development of waterways and ports. The focus is on creating a seamless network that facilitates easy and efficient movement of goods and people.
Boosting Manufacturing and Industrial Growth
The development of industrial corridors and clusters is a key component in the Gati Shakti initiative aimed at fostering a conducive environment for industrial development. Supporting the ‘Make in India’ initiative, this plan aims to transform India into a global manufacturing hub.
Technological Integration and Digitalisation
The goal of using advanced technologies in infrastructure planning is to embrace innovations that make infrastructure more future-ready, ensuring that India’s infrastructural development keeps pace with global trends.
Employment Generation and Skill Development
A significant outcome of the Gati Shakti plan is generating employment and enhancing skills in the construction and logistics sectors. By creating many infrastructure projects, the plan is set to open up new job opportunities, contributing to the overall employment landscape.
Overcoming Infrastructural Challenges in India
Addressing Infrastructural Overlaps and Inefficiencies
Overlapping responsibilities and inefficiencies have long hamstrung India’s infrastructure. These overlaps often manifest in duplicated efforts, such as roads being dug up repeatedly for different utilities. A strategic approach to reduce these redundancies involves comprehensive planning, where different infrastructural elements are developed in coordination rather than isolation.
Streamlining Application and Approval Processes for Projects
The bureaucracy in project approvals has been a significant roadblock. The current challenge lies in the lengthy and opaque processes that delay project initiation and completion. Implementing efficient, transparent, and technology-driven processes can streamline these procedures.
Resolving Coordination Issues Between Government Departments
Historically, inter-departmental coordination in India has been fraught with challenges, primarily due to siloed functioning. To overcome this, integrated planning and execution platforms, as envisaged in initiatives like the Gati Shakti Yojana, play a crucial role. These platforms facilitate synchronised efforts among various departments, ensuring that infrastructural developments are harmonised and complementary.
Implications for eCommerce Businesses
- With the improvements in transport networks and integrated planning across various infrastructure sectors, eCommerce businesses stand at the cusp of witnessing reduced logistics costs.
- Creating efficient transportation corridors and enhanced connectivity can lead to more strategic warehouse locations, optimising inventory management and reducing transit times.
- Improved connectivity and infrastructure open up previously untapped markets, particularly in semi-urban and rural areas.
- The Gati Shakti plan offers new opportunities for businesses to explore and cater to regional preferences and demands.
Conclusion
For eCommerce businesses, the Pradhan Mantri Gati Shakti Yojana is particularly significant. The enhanced infrastructure, reduced logistics costs, and improved connectivity allow businesses like yours to expand their reach, streamline their operations, and increase their competitiveness in domestic and international markets. It’s time to prepare, adapt, and align with the new infrastructural realities. NimbusPost, as a logistics aggregator, helps businesses find the best and most cost-efficient logistics partner, manage multiple carriers, provide same-day delivery and international freight transportation, and reduce shipping costs.
The future of eCommerce logistics in India is bright, and the time to embrace this change is now.
