The Interim Budget for 2024-25 unveils plans for the execution of three Economic Railway Corridors identified under the PM Gati Shakti initiative. These corridors aim to enhance multi-modal connectivity, encompassing energy, mineral, and cement corridors, port connectivity corridors, and high-traffic density corridors.
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Boosting Logistics Efficiency and Reducing Rail-Related Logistics Costs:
The announced budgetary measures signify a significant push towards enhancing logistics efficiency and reducing costs associated with rail movement. This includes plans to decongest high-density rail routes and promote modal shifts from road to rail and coastal shipping, ultimately contributing to a reduction in carbon footprint within the logistics sector.
Piyush Goyal on Infrastructure Investment:
Union Minister of Commerce, Piyush Goyal, welcomes the announcement, emphasizing that investments in infrastructure development will generate employment opportunities and have a multiplier effect on the country’s economic growth. He underscores the government’s focus on infrastructure under Prime Minister Narendra Modi’s leadership, citing its direct impact across various sectors.
Utilization and Impact of PM Gati Shakti:
Since its launch, PM Gati Shakti has played a crucial role in planning physical infrastructure. The Area Approach, incorporating economic and social sector assets, has been integrated for comprehensive planning.
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The use of PM Gati Shakti significantly de-risks infrastructure investments and encourages foreign direct investment (FDI) by facilitating logistics efficiency.
PM Gati Shakti National Master Plan for Integrated Project Implementation:
The PM Gati Shakti National Master Plan, launched on October 13, 2021, aims to break departmental silos in government and institutionalize holistic planning for stakeholders across major infrastructure projects. It provides an integrated and synchronized approach to project implementation, fostering efficiency and coordination.
Expanding the Scope of PM Gati Shakti to Social Sectors:
The government, according to DPIIT secretary Rajesh Kumar Singh, is planning to extend the scope of PM Gati Shakti to include not only infrastructure but also social sectors such as hospitals, Anganwadi centers, schools, and colleges. This move aims to optimize decision-making processes for new infrastructure development in the social sector.
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Potential Impact on India’s Economy and Infrastructure Growth:
The DPIIT Secretary highlights the transformative impact of the PM Gati Shakti National Masterplan, suggesting that in a business-as-usual scenario, India could add USD 0.75 trillion to its GDP every two years. He underscores India’s recent strides in infrastructure growth across national highways, ports, airports, waterways, and rail networks over the past nine years.
