The onset of COVID-19 pandemic had brought global economic activities to a sudden halt. India was no exception to this phenomenon. After facing the brunt of the pandemic for almost two years, the country is slowly treading towards normalcy. The need for having a post-pandemic economic revival plan is key and it appears that India has one.
Prime Minister Modi on October 13, 2021 launched the GatiShakti National Master Plan - a techno-centric strategy to build an information and transportation grid in India. On February 1, 2022, Nirmala Sitharaman, the Union Finance Minister, stated that GatiShakti is a transformative approach for economic growth and development. The approach is guided by seven engines namely road, railways, airports, ports, mass transport, waterways and logistics infrastructure. All seven engines are expected to pull forward the Indian economy in unison. These engines are supported by the complimentary roles of energy transmission, IT communication, and social infrastructure. The approach is powered by clean energy and combined efforts of the central government, state government and the private sector.
The GatiShakti Master Plan
Based on the ongoing mission to establish a self-reliant India, the GatiShakti plan's objective is to link 16 ministries through a technologically advanced information exchange platform. The present-day India still has remnants of colonial times with the excessive departmentalization of the executive arm of the state. While much has been done over the years to simplify the ministerial web of India, GatiShakti aims to truly break the departmental silos by introducing informational transparency amongst various ministries.
GatiShakti aims to increase cohesion and coordination within various ministries through a three-fold approach. Firstly, 16 ministries would be brought onto one single platform for information exchange related to all public projects. Secondly, there are plans to establish a highly sophisticated grid of multimodal transportation which aims to cut logistical costs on the Indian GDP from the present 14% to a nominal 8% which is the global average. Thirdly, a joint committee of 16 ministries would be established to implement and monitor over INR 100 lakh crores worth of investment. The GatiShakti plan is pegged to eliminate the wastage of time and costs spent by various governmental bodies on account of the lack of coordination and inter-departmental planning. There is a proposal for use of latest satellite imagery for visualization and monitoring of the major projects being undertaken by various ministries. The aim is to synergize the efforts of the government bodies through conjoint planning on aspects such as acquisition of land, laying down of underground pipelines and fiber networks, optimum utilization of the governmental resources, and reducing inconvenience caused to the public.
National Infrastructure Pipeline
The National Infrastructure Pipeline (NIP) is stated to be first of its kind government exercise to provide world-class infrastructure to citizens and improving their quality of life. The project aims to attract investments into the infrastructure sector by preventing project failures and ensuring sustained growth of the infrastructure sector. Investment opportunities are listed in sectors such as roadways, railways, urban public transport, aviation, ports and waterways. The government's plan is to invest INR 111 crore (INR 1.1 trillion) in infrastructure projects under NIP.
National Monetisation Pipeline
The National Monetisation Pipeline (NMP) was unveiled in September 2021 with the object of providing a clear framework for monetisation and give potential investors a list of assets to create investment interest. The NMP does not involve land-based projects, rather the focus is on brownfield projects where investments were already made or where assets are underutilized. A total of INR 6 trillion worth of assets are pegged to be introduced under the NMP from 2022 to 2025. The sectors covered under the NMP include roads, ports, airports, railways, warehousing, gas and product pipelines, power generation and transmission, mining, telecom, national stadia, hospitality and housing.
A promising venture
The GatiShakti plan aims to channelize an investment of INR 100 crores into various sectors such as telecommunications, renewable energy, pharma, textiles, electronics, petroleum and natural gas, aerospace, defence, multimodal transportation, and web-based connectivity. A total of 11 industrial corridors comprising of 32 nodes/ projects are in pipeline for phased-development by 2024-2025. While the benefits may seem purely local on a surface level, experts opine that GatiShakti will also boost economic and diplomatic ties of India with the South-Asian nations.
The challenges
The GatiShakti plan is a well-intended move which comes with its own challenges. The plan introduces the paradox of undertaking monumental administrative and socio-political changes to ease out logistical constraints in India. All important stakeholders at the center and the state level would be required to act in tandem for a prolonged duration to weave different parts of the grid together. The first set of milestones for GatiShakti are lined up in 2024 - 2025 which would act as a litmus test for the masterplan.
GatiShakti looks at overhauling the entire Indian economic ecosystem in a highly aspirational and nuanced manner. The plan must be implemented with the same vigor and spirit with which it is being envisaged. As the old adage goes, the fruits of future lie in the efforts of the present regime and perhaps the regimes to come. If all goes well, the plan would likely be viewed as the highlight of this decade in terms of a nation-wide effort to redefine the way of living in India.
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