PM Gati Shakti cuts India's logistics costs by 5% of GDP: NCAER, ET Infra
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India's logistics costs have come down to betweenof GDP, significantly lower than previously assumed figures of, according to studies carried out by the National Council of Applied Economic Research (NCAER). The drop reflects the success of thefor infrastructure development, as per a report titled Gati Se Pragati, released on Thursday.However, the country's logistics costs remain above global benchmarks ofseen in developed economies. This positions India favourably for achieving world-class logistics efficiency through coordinated infrastructure development. Simultaneously, India's improvement in the World Bank's Logistics Performance Index—from 44th to 38th in 2023—indicates positive momentum, though the report states substantial scope remains for further advancement.Theis India's most ambitious infrastructure coordination initiative, fundamentally reshaping the nation's approach to connectivity and economic development. The report reveals that while the programme has established robust institutional frameworks and achieved initial coordination successes, substantial opportunities remain to accelerate India's economic transformation through targeted interventions across its seven infrastructure engines.Therepresents a holistic approach encompassing, each contributing distinct value to India's connectivity ecosystem.The programme's targets are ambitious: expanding, increasing, establishing, and achieving comprehensiveThese targets align with India's broader economic objectives while addressing critical infrastructure bottlenecks that have historically constrained growth. However, significant implementation challenges persist across all seven engines, including, andbetween central and state agencies.The analysis reveals that while the institutional framework exists, translating coordination mechanisms into accelerated project delivery requires enhanced focus on, andThe economic impact assessment demonstrates substantialfrom infrastructure investments, with each rupee invested generating betweeneconomic output, depending on the infrastructure type. Roads and railways exhibit the highest multipliers, while emerging sectors likepresent significant untapped potential.Theextend beyond direct economic impact, encompassing, and enhancedfor citizens. Strategic interventions identified for optimal Gati Shakti implementation include establishing, creating, enhancingthrough innovative models, and strengtheningacross implementing agencies, the report stated.The success ofultimately depends on, andof coordination mechanisms to emerging challenges and opportunities, the report added.
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