PM Gati Shakti Plan

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Apurva Dhamankar

11/1/20222 min read

On 13th October 2021, India launched a marvellous initiative to strengthen and boost the logistics sector of India. This initiative was named The Gati Shakti master plan, which is aimed at fixing the logistical nightmare of India.

While most media houses will tell you that a lot of factories are moving from China to India, In reality, 56 U.S companies relocated their manufacturing base from China but, surprisingly, while only three companies came to India, most of the companies shifted to Thailand, Taiwan and Vietnam. This was because we had a major problem in the functioning of our ministries and unless we fix this problem, we will never be able to compete with our Asian competitors. This is the reason why the government of India envisions to revolutionize the very functioning of our Ministries with a trillion-rupee budget, and the initiative to execute The Gati Shakti Master plan.

How will this initiative revolutionize the functioning of the Indian Ministries? We first have to understand the current problems in India. The government of India puts it in three major buckets:

  • Lack of coordination between ministries of India

  • Lack of standardization and Approvals

  • Underutilization and miscalculated development

The Gati Shakti National Master plans to basically accelerate India’s infrastructure and the government plans to do this through the joint planning of 20 plus departments whereby every department gets access to a database of ongoing and future projects. They must upload  information to inform other ministries about their projects. When all this data is collated in a single database, everyone into has the right and accurate information on time. Eventually, using this data, they can coordinate and even synchronize their infrastructure development. The three pillars are:

  •  Perfect Coordination and synchronized planning - For this, the government has introduced an information portal and geographic information system.

 • Fast approval and efficient project planning.

 • Multi-modal connectivity - more highways, ports and logistics will be built in coordination so industries can decrease their logistics cost.

This is how the Gati Shakti is expected to bring about a logistical revolution in India by which our traders will have world-class and efficient connectivity to produce globally competitive products.

So, can we say for sure that India will go on to become a market leader in manufacturing just like China?

Well, I would say don’t be too excited about headlines, because we have a very long way to go.

Thank you.

Regards,

Ishan Mishra,

Kautilya, IBS Mumbai.

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