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India Surpasses China in Infrastructure with Gati Shakti Initiative: Morgan Stanley

India Surpasses China in Infrastructure with Gati Shakti Initiative: Morgan Stanley

Morgan Stanley has highlighted the success of the PM Gati Shakti scheme in boosting India's infrastructure development and multi-modal connectivity across highways, railways, and ports, spurring economic growth. The report notes that over the past decade, India has significantly scaled up its infrastructure with better-targeted and potentially more productive investments.

"We expect India's infrastructure investment to steadily increase from 5.3% of GDP in FY24 to 6.5% by FY29," the report states. This suggests a strong 15.3?GR in infrastructure investments, leading to cumulative spending of USD 1.45 trillion over the next five years, which will support sustained high productive growth.

Interestingly, the report claims that India's physical infrastructure compares favorably to China's when considering the GDP differential. The World Bank's Logistics Index Report, 2023, indicates that the average Container Dwell Time in Indian ports is three days, better than the UAE, South Africa, the USA, and Germany. Indian ports' turnaround time is 0.9 days, surpassing the USA, Australia, and Singapore. In FY24, overall cargo growth at ports was 7%, with major government-owned ports handling 53% of the cargo.

Launched by Prime Minister Narendra Modi in October 2021, the PM Gati Shakti National Master Plan integrates 16 ministries, including Railways and Highways, for coordinated implementation of multi-modal connectivity projects. It aims to drive economic growth and sustainable development through integrated infrastructure development.

According to Morgan Stanley, the PM Gati Shakti scheme has identified 101 projects worth ?60,900 crore in the ports and shipping sectors. As of April 2023, 26 projects worth ?8,900 crore have been completed, 42 projects worth ?15,340 crore are under development, and 33 projects worth ?36,640 crore are under implementation. The Ministry of Ports, Shipping, and Waterways is also executing a comprehensive port connectivity plan with the highways and railways ministries.

Under the Sagarmala programme, 220 projects worth ?1.12 lakh crore have been completed, 231 projects worth ?2.21 lakh crore are under implementation, and 351 projects worth ?2.07 lakh crore are under evaluation. National Waterways are also being developed for efficient and eco-friendly cargo and passenger transport.

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India Surpasses China in Infrastructure with Gati Shakti Initiative: Morgan Stanley

India Surpasses China in Infrastructure with Gati Shakti Initiative: Morgan Stanley

Morgan Stanley has highlighted the success of the PM Gati Shakti scheme in boosting India's infrastructure development and multi-modal connectivity across highways, railways, and ports, spurring economic growth. The report notes that over the past decade, India has significantly scaled up its infrastructure with better-targeted and potentially more productive investments.

"We expect India's infrastructure investment to steadily increase from 5.3% of GDP in FY24 to 6.5% by FY29," the report states. This suggests a strong 15.3?GR in infrastructure investments, leading to cumulative spending of USD 1.45 trillion over the next five years, which will support sustained high productive growth.

Interestingly, the report claims that India's physical infrastructure compares favorably to China's when considering the GDP differential. The World Bank's Logistics Index Report, 2023, indicates that the average Container Dwell Time in Indian ports is three days, better than the UAE, South Africa, the USA, and Germany. Indian ports' turnaround time is 0.9 days, surpassing the USA, Australia, and Singapore. In FY24, overall cargo growth at ports was 7%, with major government-owned ports handling 53% of the cargo.

Launched by Prime Minister Narendra Modi in October 2021, the PM Gati Shakti National Master Plan integrates 16 ministries, including Railways and Highways, for coordinated implementation of multi-modal connectivity projects. It aims to drive economic growth and sustainable development through integrated infrastructure development.

According to Morgan Stanley, the PM Gati Shakti scheme has identified 101 projects worth ?60,900 crore in the ports and shipping sectors. As of April 2023, 26 projects worth ?8,900 crore have been completed, 42 projects worth ?15,340 crore are under development, and 33 projects worth ?36,640 crore are under implementation. The Ministry of Ports, Shipping, and Waterways is also executing a comprehensive port connectivity plan with the highways and railways ministries.

Under the Sagarmala programme, 220 projects worth ?1.12 lakh crore have been completed, 231 projects worth ?2.21 lakh crore are under implementation, and 351 projects worth ?2.07 lakh crore are under evaluation. National Waterways are also being developed for efficient and eco-friendly cargo and passenger transport.

 

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