The PM Gati Shakti Plan has cut India’s logistics costs from 13–14% to 7.8–8.9% of GDP, according to the NCAER report ‘Gati Se Pragati’.
While India’s logistics costs remain higher than the global benchmarks of 6–8% observed in developed economies, the reduction marks a significant stride toward achieving world-class logistics efficiency.
India’s improved ranking in the World Bank’s Logistics Performance Index (LPI), moving from 44th to 38th in 2023, reinforces this positive momentum.
The PM Gati Shakti National Master Plan stands as India’s most ambitious initiative for infrastructure coordination.
The programme has created a robust institutional framework and early successes in inter-agency collaboration, aiming to fundamentally transform how the country develops connectivity and supports economic growth.
The plan operates through seven key ‘infrastructure engines’:
Each engine contributes uniquely to India’s connectivity ecosystem. The government has set bold targets, including:
According to the report, every ₹1 invested in infrastructure generates between ₹2.5 to ₹4 in economic output, with roads and railways showing the highest multiplier effects.
The socio-economic benefits also include job creation, regional development, sustainability, and improved quality of life.
Despite these gains, the programme still faces several challenges:
To overcome these barriers, the report recommends:
The report concludes that the long-term success of PM Gati Shakti hinges on sustained political commitment, adequate funding, and a dynamic approach to project execution.
Enhancing technology adoption, private investment, and institutional efficiency will be critical for accelerating India’s infrastructure-driven economic transformation.
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