What is the Gati Shakti Master Plan?

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Why in the news?

The Prime minister had announced “PM GATI SHAKTI” national master plan in his Independence Day speech on 15 August 2021.

• It was launched on 13 October

Objectives:

• PM Gati Shakti Plan, a 100-lakh crore national infrastructure master plan which will make a foundation for infrastructure and give an integrated pathway to our economy.
• At the Initial stage, the master plan will include 16 ministries including Railways, Aviation, Petroleum, Shipping, Road transport, Textiles etc.

Logistic Cost:

 The PM Gati Shakti Plan also aims to reduce the logistic cost that, earlier high logistics cost at 13 percent of GDP in India was impacting its competitiveness in exports. Plan will also give a boost to India as an “investment destination”.

How PM Gati Shakti will help India’s development?

• The infrastructure projects will boost jobs and increase the demand for goods and commodities, besides attracting major investments.
• The Indian economy can achieve a significant growth trajectory by mitigating the impacts of the pandemic.
• The National Master Plan will address this, as working on the basis of the master plan will lead to optimum utilization of resources and reduce both cost and time overruns. This will help the government to save thousands of crores of taxpayer’s money.

How can India improve the implementation of PM Gati Shakti?

• With the availability of Geographic Information Systems and remote sensing technologies under the master plan, the policymakers have to do well to reclaim lands already subjected to degradation and pollution, rather than alienate controversial new parcels.
• The Economic Survey for 2020-21 mentioned that India needs ₹4.5-lakh crore investments per year from the private sector to boost NIP sectors. So, the government has to address the issues associated with low credit offtake for successful private investments.
• To the proper implementation of PM Gati Shakti, India needs to address structural and macroeconomic stability concerns, emanating from high public expenditure.

In conclusion

•  The Gati Shakti will boost economic growth, attract foreign investments and enhance the country’s global competitiveness thereby enabling smooth transportation of goods, people and services and creating employment opportunities. Thus, the PM Gati Shakti will help India to realise its dream of becoming the “business capital” of the world.