New Delhi, 3 July (IANS). According to the study conducted by the National Council of Applied Economic Research (NCAER), India’s logistics cost has been between 7.8-8.9 percent of GDP, which is much lower than the earlier estimated 13–14 percent figures. This reflects the success of the PM speed power National Master Plan brought for the development of infrastructure. This information was given in a report called ‘speed at speed’ released on Thursday.
However, the country’s logistics cost is still above the global benchmark of 6-8 percent of developed economies.
The report reported that India’s arrival from 44th position in 2023 to 38th in the World Bank’s Logistics Performance Index reflects the positive speed, although there is a sufficient scope for further progress.
The PM speed power national master plan is India’s most ambitious infrastructure coordination initiative, which is rapidly changing the attitude of connectivity and economic development of the country.
According to this report, the scheme has established strong institutional structures and achieved initial coordination successes, but its seven infrastructure engines remain sufficient opportunities to accelerate India’s economic change through targeted interventions in engines.
Seven engine framework represents a holistic approach to incorporating roads, railways, airports, ports, waterways, mass transport and logistics infrastructure, each of which contributes different values to India’s connectivity ecosystem.
The report stated that the target of the scheme is ambitious, including expanding national highways up to 200,000 km, increasing railway freight capacity by 1,600 million tonnes, setting up 200-220 new airports and wide multi-model integration.
The report stated that all seven engines have implementation challenges, including funding intervals, regulatory complexities, delays in land acquisition and lack of coordination between central and state agencies.
Analysis suggests that despite institutional structure existing, the coordination mechanism needs more attention to technology, private sector participation and streamlined approval procedures to convert to quick project distribution.
The report states that the success of PM motion power eventually depends on continuous political commitment, adequate resource allocation and continuous adaptation of the coordination mechanism for emerging challenges and opportunities.
-IANS
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