The survey pointed out that logistics costs in India have been in the range of 14-18 per cent of GDP against the global benchmark of 8 per cent.

According to the Economic Survey 2022-23, support for India’s economic growth will come from path-breaking measures like PM GatiShakti, National Logistics Policy and Production-Linked Incentives schemes. The Economic Survey, which details the state of the economy in the current fiscal while giving a sneak peek into the future, was tabled in Parliament by Finance Minister Nirmala Sitharaman on Tuesday. According to the survey, while roads, railways and waterways have seen unprecedented expansion in the last eight years, ports and airports have been substantially upgraded, PTI reported. The survey further pointed out that logistics costs in India have been in the range of 14-18 per cent of GDP against the global benchmark of 8 per cent.

“The logistics industry has grown rapidly at a CAGR of 15% and will continue to grow at a faster rate in the years ahead. With the budget around the corner, we expect the government to prioritise the strengthening of logistics and related infrastructure that would lead to economic growth for the country as a whole,” Nikhil Agarwal, President-CJ Darcl Logistics, said.

Boasting last-mile connectivity

The PM Gati Shakti – National Master Plan was announced in 2021 to break departmental silos and bring in more holistic and integrated planning and execution of projects to address the issues of multi-modal and last-mile connectivities. The projects pertaining to seven engines (roads, railways, airports, ports, mass transport, waterways and logistic infrastructure) in the National Infrastructure Pipeline (NIP) will be aligned with PM Gati Shakti framework, PTI reported.

“To ensure that logistics infrastructure and multi-modal connectivity continue to develop, the government should allocate funds to multi-modal logistics parks to improve the country’s logistics efficiency in a time bound manner. This would help India to become a leading logistics provider delivering efficient, safe, and economical logistics solutions across all modes,” Agarwal added.

Noting that to bring in further convergence with comprehensive planning across the Centre and states, PM GatiShakti has sectoral complementarity of logistics facilitation through the National Logistics Policy launched in September 2022, the survey said, “All of this is expected to tighten the nuts and bolts for the arduous infrastructure journey that our country has undertaken together by the participation of centre, state, local governments and the private sector”.

While pointing out that traditional infrastructure sectors such as roads and railways have received a renewed push in recent years, the key document said sectors like inland water transport and civil aviation, which have significant untapped potential, are also being encouraged sufficiently, the PTI report further stated.

https://www.financialexpress.com/budget/economic-survey-2023-says-indias-economic-growth-to-find-support-from-pm-gatishakti-national-logistics-policy-2966154/?utm_source=newzmate&utm_medium=email&utm_campaign=femain&pnespid=Ged15FNe7jxJy0iL4M7TDEJHsQxkxbtluxtNEqYZPpHKuemMgueoHJbkMiCwo.3hlLkfo3O4