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Time of India
an hour ago
- Business
- Time of India
India's vision to become a $30 trillion economy by 2047 by focussing on multimodal logistics across road, rail, port and air networks on a single digital platform
Dr. Prashant Prabhakar Deshpande has post-graduated in Economics with a Gold Medal in 1976 and was awarded a Ph.D in Social Sciences from Nagpur University in 2007. Introduction The high cost of logistics due to poor infrastructure and efficiency is said to be on the radar of the Indian Policy makers for the past few years. Taking note of this concern, Budget 2025 underlined that Supply Chain & Logistics are fundamental to all the 4 major engines of growth viz. Agriculture, MSME, Investment & Exports. Higher cost in this sector has been considered the biggest hurdle in India's aspirations to become a hub of global manufacturing. Changes are therefore being planned to further fuel India's growth re-affirming India's position as the fastest growing major economy in the world. India's vision to become a $30 trillion economy by 2047 With an aim to become a $30 trillion economy by 2047 Indian government has been laying the groundwork for an ambitious transformation of its logistics ecosystem with a focus on reimagining infrastructure development to create a smart, interconnected logistics network that can: Dramatically reduce transport costs; Enhance supply chain efficiency, and; Support sustainable and equitable economic growth. Nations's current freight logistics scenario Current Scenario: Road transport: India's freight logistics model is heavily skewed towards road transport accounting for nearly 60% of the cargo movement. Although the model is critical for last-mile connectivity, it is considered economically and environmentally inefficient for long-haul freight. Rail Transport Rail transport, although inherently safer and more cost-effective for bulk goods, carries just 25% of the total cargo; Inland Waterways: Inland waterways although offer vast untapped potential, at present remain grossly underutilised. The government feels this scenario keeps the logistics costs in the country at a staggering 14–18% of GDP, almost double that of the developed economies, the resulting inefficiency acting as a drag on the manufacturing competitiveness and export agility. Government's National Master Plan envisioning multimodal logistics The government in response is reportedly driving a Policy and Infrastructure Overhaul anchored by the PM Gati Shakti National Master Plan envisioning multimodal logistics. It must be noted that it is for the first time that National Infrastructure Planning is being executed in a coordinated, data-backed manner: Minimising overlap, and; Enabling targeted investments where they are needed most. Progress under the National Master Plan Railways: Indian Railways, one of the largest players in the transformation, has accelerated capacity expansion along high-density corridors since 2014 fast-tracking strategic projects linking ports, manufacturing clusters, and mining belts. The commissioning of Dedicated Freight Corridors (DFCs) on both the Eastern and Western routes is said to be already delivering results: Improving freight speed, and; Freeing up existing tracks for faster passenger train movement. Simultaneously: Multi-modal logistics parks are being developed to serve as integrated hubs for road, rail, and port connectivity. These centres are envisioned as the future-ready logistics engines of the economy: Cutting down cargo handling time; Optimising warehousing, and; Streamlining inventory flow. Additional features include: Digital freight tracking; Automated customs processes, and; Climate-resilient infrastructure. Technology too is said to be reshaping logistics with: Artificial Intelligence with the computational systems to perform tasks typically associated with human intelligence such as, learning, reasoning, problem solving perception & decision making, predicting freight flows; with the computational systems to perform tasks typically associated with human intelligence such as, learning, reasoning, problem solving perception & decision making, Blockchain , a distributed ledger with growing lists of records that are securely linked together via cryptographic hashes transforming cross-border documentation, and; , a distributed ledger with growing lists of records that are securely linked together via cryptographic hashes and; GPS-based cargo tracking standardising visibility and accountability across the value chain. It seems, it has been realised, digitisation no longer is a choice but is the backbone of efficient, sustainable logistics. Importance of Reform in human capital & governance However, human capital and governance reform are considered equally vital to maintain momentum ensuring: A skilled logistics workforce; Uniform rules across states, and; Faster digital approvals. Epilogue The government's stated goal is to bring logistics costs down to 12% of GDP by 2030 and aligning it with the global standards of 8% or less by 2040. It is opined, achieving this, will not only reduce operational costs for businesses, but also: Support exports; Improve the ease of doing business, and; Enable inclusive employment generation in Tier-II and Tier-III cities. Building upon transformational initiatives like the PM Gati Shakti, the National Logistics Policy (NLP), Logistics Efficiency Enhancement Programme (LEEP), development of Dedicated Freight Corridors (DFCs), Bharatmala Pariyojana, Sagarmala programme, formulation of the National Rail Plan (NRP), Multi-Modal Logistics Parks, National Infrastructure Pipeline and Jal Marg Vikas Project, the Government has been introducing cohesive policies that are aimed at reducing logistics costs. It is opined this strategic focus demonstrates government's stronger commitment to tackling long-standing challenges such as: Fragmented networks; Underdeveloped infrastructure, and; Underuse of technology. Aligning logistics reforms with economic planning is said to make Budget 2025 a crucial turning point in India's effort to boost global competitiveness and drive sustainable growth. As India charts its path towards its Centennial economic vision, logistics infrastructure will be the foundation. It is however opined, to truly realise this vision, the infrastructure: Must be smart; Sustainable, and; Synchronised. It is opined the Policy & government's resolve in its implementation are steering India in the right direction. Facebook Twitter Linkedin Email Disclaimer Views expressed above are the author's own.
Economic Times
5 hours ago
- Business
- Economic Times
Parag Jain appointed as new RAW Chief, succeeds Ravi Sinha
Parag Jain Synopsis Parag Jain, a 1989-batch IPS officer from the Punjab cadre, has been appointed as the new chief of RAW, succeeding Ravi Sinha on July 1, 2025. His appointment, for a fixed two-year term, comes as India navigates complex external security challenges and evolving geopolitical dynamics. The central government has appointed Parag Jain, a 1989-batch Indian Police Service (IPS) officer of the Punjab cadre, as the next chief of the Research and Analysis Wing (RAW), India's external intelligence agency. ADVERTISEMENT Jain will take over from the current chief Ravi Sinha, whose tenure concludes on June 30, 2025. The appointment is for a fixed two-year term, with Jain scheduled to assume office on July 1, 2025. Parag Jain is currently heading the Aviation Research Centre, which played a vital role during 'Operation Sindoor' by collecting intelligence on the Pakistani armed forces. A seasoned intelligence officer, Parag Jain has held various sensitive positions related to national security and foreign intelligence. His elevation to the top post of RAW comes at a time when India's external security dynamics remain complex and closely linked to evolving geopolitical developments. (You can now subscribe to our Economic Times WhatsApp channel) (Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online. NEXT STORY
Economic Times
7 hours ago
- Business
- Economic Times
Ford forced to idle multiple US plants on China magnet shortage
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Economic Times
8 hours ago
- Business
- Economic Times
Silver price will explode in July: Rich Dad Poor Dad author Robert Kiyosaki
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The Sun
10 hours ago
- Business
- The Sun
Jualan Rahmah aids youth in managing rising living costs in Kuching
KUCHING: The Jualan Rahmah MADANI programme has become a crucial support system for young Malaysians struggling with rising living costs. By offering essential goods at lower prices, the initiative helps ease financial burdens while promoting prudent spending. Media practitioner Asyraf Halim, 34, shared how the programme has helped him manage expenses since living independently. 'Prices here are much lower than at shopping malls, allowing me to save significantly,' he said during the event at the Sarawak State Mosque compound. Ismasuzilla Bahari, 28, from Telaga Air, echoed this sentiment, noting how the programme helps her family save RM300 to RM400 monthly on groceries. 'It's a relief for households like mine,' she added. Zulhilmi Alet, 31, an assistant officer at the Ministry of Youth and Sports, stressed the programme's broader impact. 'Expanding it to include more local items like rice would benefit everyone, especially the B40 group,' he said. Organised by the Sarawak State Mosque Welfare Trust Board (LKMNS) in collaboration with the Ministry of Domestic Trade and Cost of Living (KPDN), the event saw strong turnout, with stalls opening as early as 8 am. The initiative is part of the Payung Rahmah framework under Budget 2025, designed to alleviate living costs while boosting local businesses.
