Som Parkash, Minister of State for Commerce and Industry, stated today that the PM Gati Shakti National Masterplan will aid India's goal of becoming a USD 5 trillion economy. Som Parkash, speaking to industry stakeholders at the India International Logistics & Supply Chain Conference, organized by PHDCCI, stated that India is one of the most appealing investment destinations in the world and that the government has prepared some important frameworks to help businesses thrive in the country.
One of them is the PM Gati Shakti master plan and its implementation, which will assist us in achieving our logistical efficiency goal. An infrastructure master plan will make a difference by breaking down entrenched silos over a six-year period, with Rs 20,000 crore allocated in this year's Budget.
PM Gati Shakti, propelled by seven engines – roads, railways, airports, ports, mass transportation, waterways, and logistics – is an idea whose time has come, according to the Minister.
The Minister praised PHDCCI for being a forerunner in establishing a dedicated forum for Gati Shakti, the contribution of which will go a long way toward aligning the objectives with the PM's vision of becoming a globally leading economy.
To help ensure the success of this plan, the Minister urged all industry stakeholders to work together to achieve significant results.
According to Amrit Lal Meena, Special Secretary – Logistics, Department of Commerce and Industry, Government of India, a lot of work is being done in this direction, primarily on component costs of transportation and fuel, as well as inventory costs, to improve logistic efficiency.
Time and cost overruns are major concerns in the plan's implementation. Steps are being taken to reduce them to zero. In the PM GatiShakti master plan, 600 layers of state government ministries are integrated on a digital platform for better coordination and early resolution. Transportation gaps are identified and addressed on a priority basis. Gaps in transportation are identified and prioritized in order to eliminate unnecessary congestion, according to Amrit Lal Meena.
Pradeep Multani, President of PHDCCI, stated that the Indian logistics sector is experiencing rapid growth. According to the domestic rating agency ICRA, India's logistics sector will grow at an 8-10% annual rate over the medium term. This is an improvement over the industry's compound annual growth rate (CAGR) of 7.8 percent over the previous five years.
The government's priority for the future is to reduce logistics costs from 14.4% to 4%. According to Multani, the development of the logistics sector is critical for the Indian economy because it will boost exports, create jobs, and give the country a prominent position in the global supply chain.
