According to international investment bank and financial services provider Morgan Stanley, India’s infrastructure development and multi-modal connectivity through ports, trains, and highways have benefited from the PM Gati Shakti initiative, which has accelerated economic growth and given India an edge over fellow Asian giant China.
The paper claims that over the past ten years, India has significantly increased its infrastructure spending, with more investments that are also more focused and may be more fruitful.
“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. Indeed, 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. In our view this will help to lift the investment rate, leading to a sustained period of high productive growth,” the report said.
Remarkably, the research also notes that “when viewed in the context of GDP differential, India’s physical infrastructure scale already compares favorably to China’s, contrary to popular perception.”
A World Bank Logistics Index Report from 2023 is used in the report, which states that the average Container Dwell Time in for ports in India was three days, while it was four days in the UAE and South Africa, seven days in the USA, and ten days in Germany.
According to the report by Morgan Stanley, the “turnaround time” for ports in India now stands at 0.9 days, which is better than that of major global economic powers such as the USA (1.5 days), Australia (1.7 days), Singapore (1.0 days).
In FY24, the overall cargo growth at Indian ports was 7 percent, with 53 percent being handled by major ports (government-owned).
In October 2021, Prime Minister Narendra Modi unveiled the PM Gati Shakti National master plan, which aims to enhance infrastructure. For the purpose of coordinated multi-modal connectivity project implementation and integrated planning, it unites 16 ministries, including Railways and Highways, on a digital platform.
It is designed to be a revolutionary strategy for sustainable development and economic progress, with roads, railroads, ports, airports, mass transit, waterways, and logistical infrastructure serving as the “7 engines” that propel the economy forward as a whole.
The Morgan Stanley Report claims that PM Gati Shakti’s policies are paying off. To date, 101 projects totaling ₹ 60,900 crore have been identified for implementation in the port and shipping sectors under the PM Gati Shakti plan.
26 projects totaling ₹ 8,900 crore had been finished as of April 2023; 42 projects totaling ₹ 15,340 crore were in development; and 33 projects totaling ₹ 36,640 crore were in execution.
Along with the ministries of highways and railroads, the Ministry of Ports, Shipping, and Waterways (MoPSW) is putting a thorough port connectivity strategy into action.
Also Read: China praises Nehru’s Panchsheel, Non-Alligned Movement
According to the Morgan Stanley analysis, 220 projects totaling ₹ 1.12 lakh crore have been finished as part of the Sagarmala initiative, 231 projects worth ₹ 2.21 lakh crore are in the process of being implemented, and 351 projects worth ₹ 2.07 lakh crore are now undergoing appraisal.
In a similar vein, national waterways are being developed as a more effective and environmentally responsible mode of transportation for both people and freight.
