Global investment bank Morgan Stanley has praised India's PM Gati Shakti scheme for significantly advancing the country's infrastructure development and multi-modal connectivity, notably in highways, railways, and ports. This progress is seen as a catalyst for economic growth.
The bank's report highlights that India has substantially upgraded its infrastructure over the past decade, with increased and better-targeted investments, promising greater productivity.
"We expect India’s infrastructure investment to steadily increase from 5.3 per cent of GDP in FY24 to 6.5 per cent of GDP by FY29," the report states. "This implies that infrastructure investments are expected to register a strong 15.3 per cent CAGR, resulting in cumulative spending of USD 1.45 trillion over the next five years. This will help lift the investment rate, leading to a sustained period of high productive growth."
Contrary to popular perception, the report notes that India's physical infrastructure already compares favourably to China’s when considering the GDP differential.
Citing the World Bank’s Logistics Index Report 2023, Morgan Stanley highlights that the average container dwell time in Indian ports was three days, compared to four days in the UAE and South Africa, seven days in the USA, and 10 days in Germany.
Additionally, Indian ports' turnaround time has reached 0.9 days, outperforming the USA (1.5 days), Australia (1.7 days), and Singapore (1.0 days). In FY24, the overall cargo growth at ports was 7 per cent, with major ports (government-owned) handling 53 per cent of the cargo.
Prime Minister Narendra Modi launched the PM Gati Shakti National Master Plan for infrastructure development in October 2021. The plan integrates 16 ministries, including Railways and Highways, on a digital platform to ensure coordinated implementation of multi-modal connectivity projects.
It aims to drive economic growth and sustainable development through seven key sectors: roads, railways, airports, ports, mass transport, waterways, and logistics infrastructure.
According to the Morgan Stanley report, initiatives under PM Gati Shakti are producing results. So far, 101 projects worth Rs 60,900 crore have been identified for implementation in the ports and shipping sectors. As of April 2023, 26 projects worth Rs 8,900 crore have been completed, 42 projects worth Rs 15,340 crore are under development, and 33 projects worth Rs 36,640 crore are under implementation.
The Ministry of Ports, Shipping, and Waterways (MoPSW) is also executing a comprehensive port connectivity plan in coordination with the highways and railways ministries.
Under the Sagarmala programme, 220 projects worth Rs 1.12 lakh crore have been completed, 231 projects worth Rs 2.21 lakh crore are under implementation, and 351 projects worth Rs 2.07 lakh crore are at the evaluation stage. National waterways are also being developed as an efficient and eco-friendly mode of transport for cargo and passengers.
Follow us
