The PM Gati Shakti National Master Plan has driven India’s logistics costs down to 7.8-8.9% of GDP, a sharp drop from the earlier 13-14%, according to the Gati Se Pragati report released today by the National Council of Applied Economic Research (NCAER).
This achievement highlights the transformative impact of the ambitious infrastructure coordination initiative, though costs remain slightly above the 6-8% global benchmark for developed economies. Launched to revolutionize India’s connectivity, PM Gati Shakti integrates seven infrastructure engines—roads, railways, airports, ports, waterways, mass transit, and logistics—unlocking economic potential through seamless multi-modal development.
The report credits the program for India’s climb from 44th to 38th in the World Bank’s Logistics Performance Index in 2023, signaling robust progress while noting room for further gains. Ambitious targets include expanding national highways to 200,000 km, boosting railway freight capacity to 1,600 million tonnes, and building 200-220 new airports.
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These align with India’s vision for economic growth but face challenges like funding shortages, regulatory hurdles, land acquisition delays, and central-state coordination gaps. The report underscores the economic multiplier effect of infrastructure investments, with each rupee yielding 2.5-4.0 times in output, particularly in roads and railways. Emerging sectors like inland waterways hold untapped potential. Beyond economics, the plan drives job creation, regional growth, sustainability, and improved quality of life.
To maximize impact, the report recommends real-time project monitoring, dedicated financing mechanisms, increased private sector involvement, and enhanced agency capacity. Sustained political will and adaptive coordination are critical for success, positioning PM Gati Shakti as a cornerstone of India’s journey toward world-class logistics and economic transformation.
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