PM Gati Shakti Master Plan cuts India's logistics costs by 5 pc of GDP

INDIA'S logistics costs have come down to between 7.8-8.9 per cent of GDP, significantly lower than previously assumed figures of 13-14 per cent according to studies carried out by the National Council of Applied Economic Research (NCAER), reflecting the success of the PM Gati Shakti National Master Plan for infrastructure development, according to a report, titled 'Gati Se Pragati', released on Thursday.

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However, the country's logistics costs are still above global benchmarks of 6-8 per cent seen in developed economies. This positions India favourably for achieving world-class logistics efficiency through coordinated infrastructure development.

Simultaneously, India's improvement in the World Bank's Logistics Performance Index from 44th to 38th in 2023 indicates positive momentum, though substantial scope exists for further advancement, the report states.

The PM Gati Shakti National Master Plan is India's most ambitious infrastructure coordination initiative, fundamentally reshaping how the nation approaches connectivity and economic development. This report reveals that while the programme has established robust institutional frameworks and achieved initial coordination successes, substantial opportunities remain to accelerate India's economic transformation through targeted interventions across its seven infrastructure engines.