PM Gati Shakti cuts India's logistics costs by 5% of GDP: NCAER, ET Infra
Advt
India's logistics costs have come down to betweenof GDP, significantly lower than previously assumed figures of, according to studies carried out by the National Council of Applied Economic Research (NCAER). The drop reflects the success of thefor infrastructure development, as per a report titled Gati Se Pragati, released on Thursday.However, the country's logistics costs remain above global benchmarks ofseen 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 the report states substantial scope remains for further advancement.Theis India's most ambitious infrastructure coordination initiative, fundamentally reshaping the nation's approach to connectivity and economic development. The 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.Therepresents a holistic approach encompassing, each contributing distinct value to India's connectivity ecosystem.The programme's targets are ambitious: expanding, increasing, establishing, and achieving comprehensiveThese targets align with India's broader economic objectives while addressing critical infrastructure bottlenecks that have historically constrained growth. However, significant implementation challenges persist across all seven engines, including, andbetween central and state agencies.The analysis reveals that while the institutional framework exists, translating coordination mechanisms into accelerated project delivery requires enhanced focus on, andThe economic impact assessment demonstrates substantialfrom infrastructure investments, with each rupee invested generating betweeneconomic output, depending on the infrastructure type. Roads and railways exhibit the highest multipliers, while emerging sectors likepresent significant untapped potential.Theextend beyond direct economic impact, encompassing, and enhancedfor citizens. Strategic interventions identified for optimal Gati Shakti implementation include establishing, creating, enhancingthrough innovative models, and strengtheningacross implementing agencies, the report stated.The success ofultimately depends on, andof coordination mechanisms to emerging challenges and opportunities, the report added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
17 minutes ago
- Indian Express
Inside Track: Wheeling in Circles
At the start of 2025 we were led to believe that we were Donald Trump's special friend and that India would probably be the first to conclude a trade tariff agreement with the US. Now we are not just back of the queue, but could be blackballed! A close observer of Trump-India relations has a different take from others for the mysterious fallout. It was not initially about Russian oil, Pakistani perfidy or thwarting Trump's Nobel Peace Prize ambitions. Trump was infuriated with India's dilatory tactics in signing a deal, which goes back to his first presidency. His joint appearance with Modi in Texas in 2019 was meant to help seal an agreement, but talks fell through a day later in New York. Time and again, as in Gujarat February 2020, like the traditional smooth-talking Indian trader, our officials assured that a deal was almost through, without confessing candidly that some portions of the deal concerning agriculture and dairy products were non-negotiable. Unfortunately, Trump is focused on just this sector, since his Republican supporters come from the farm belt. As US Commerce Secretary Howard Lutnick remarked angrily, 'You claim to be such a big country and you can't accept a bushel of American corn.' After being re-elected, President Trump was even willing to overlook past slights. (PM Modi did not call or even telephone Trump during his three visits to the US during the Biden presidency.) But in 2025, once again, despite the head-start in negotiations, the deal has not materialised! Retired IAS officer Subhash Chandra Garg's new book is titled No Minister. The former Finance Secretary does not hold back in recalling riveting encounters with his ministerial bosses, some of whom, in fact, refused to take no for an answer, despite bureaucrats citing the rules and the wishes of the incumbent PM. Garg names P Chidambaram among the naysayers who, as finance minister, threatened then PM Manmohan Singh with his resignation unless his proposal that 60-70 secretary level-posts were allotted to the Indian Revenue Service cadre. In Garg's view, this unbalanced the bureaucratic structure without improving tax collection. Similarly, Andhra CM Chandrababu Naidu, on whom the Vajpayee government was dependent for survival, cornered more than 40 % of the portfolios of Indian projects approved by the World Bank in 1999 and 2000. Despite objections from the government, Naidu forced them to agree to his audacious demand, in disregard of fair Central resource distribution. Similarly, Kamal Nath bullied his way so that 5% of the total pool of government houses in Delhi was part of his discretionary quota, which largely included newly constructed category type VII and VIII bungalows in Moti Bagh. Considering it is an intra-party contest to elect the fairly modest position of secretary (administration) of the Constitution Club, it is surprising that the poll has attracted intense national interest and media scrutiny. In contrast, Rajeev Shukla (Congress) has been elected unopposed as secretary (sports) and Tiruchi Siva (DMK) as secretary (culture) without any rancour. There seems more than meets the eye in the fierce tussle between the two ill-matched adversaries for the post of administrative secretary. The jocular, down-to-earth ex-MP and UP Jat leader Sanjeev Balyan, who only joined the club eight years ago, appears to have been pitch forked into the contest, while Rajiv Pratap Rudy, the suave Bihar MP who has been the guiding spirit behind the club for the last 25 years, is credited with upgrading its facilities, including gyms, saunas, lounges and sports facilities. Balyan's most vocal campaigner is controversial Bihar MP Nishikant Dubey, who is fighting with all the vehemence and caste calculations of a panchayat election and throwing names of powerful central politicians. Pratap, more discreet, is believed to be backed by an influential regional satrap, who has not shown his hand openly. Amidst constant reports of Air India's slipping standards, I am pleased to report my recent personal experience of the airlines, which demonstrates that the staff's spirit of service beyond the call of duty, the hallmark of JRD Tata's original Air India, has not vanished. While flying back from Kenya on an AI flight, the senior air hostess noticed my distress as I rummaged through my carry bag and under the seat for my missing iPad, which had obviously been left behind in Nairobi. I presumed resignedly that recovering my iPad was like looking for a needle in a haystack, but I had not reckoned with the resourcefulness of the very helpful air hostess and the AI Nairobi manager. The latter, with the assistance of his counterpart at the Nairobi airport lounge, located the missing iPad, got it identified through WhatsApp photos and arranged to have it returned to Delhi within a week.
The Hindu
16 hours ago
- The Hindu
With new airport terminal, Maldives eyes more visitors
'A pillar of economic independence' — that is what Maldivian President Mohamed Muizzu called the new terminal at the Velana International Airport near Male, while inaugurating it on June 26, 2025, the country's 60th Independence day. The launch ceremony was spectacular, with synchronised fireworks lighting up the sky — a fete that put the Maldives in the Guinness Book of World Records. Addressing a large crowd, President Muizzu spelled out the aspiration of the country of 4 lakh people, currently grappling with high external debt — it exceeded $8 billion 2024 — and its inevitable fiscal consequences. His administration is trying to tighten its fiscal policy, alongside a full-throttle push to tourism, the country's biggest foreign exchange earner that contributes 21 % to the GDP. The airport's new terminal will drive growth, particularly in tourism, as well as the broader economy, Mr. Muizzu noted optimistically as the Indian Ocean archipelago grapples with twin deficits and a daunting debt repayment schedule this year and next. The scenic country's policy makers have put all eggs in the tourism basket, and are fervently hoping that the new terminal will make a difference. Not just Maldivian policy makers, even international financial institutions see the new terminal as a likely game-changer. In its Maldives update in April 2025, the World Bank noted that the new terminal's completion would enable higher tourist arrivals, and lead to a projected economic growth of '5.2 % on average over the medium term. 'Thanks to the Maldives' strong tourism base, growth has held up well…the opening of airport terminal expansion would ease supply-side bottleneck for tourism and help sustain growth momentum,' an IMF said at the end of its February 2025 mission. For Maldivians, the airport terminal symbolises a long-held dream that has finally come true, after a decade marked by key political shifts and considerable economic strain stemming from high foreign debt, including to China and India. 'For over 20 years now, there has been talk in the Maldives about not having the right gateway. As a sought-after destination drawing affluent tourists, it is important to make a good first impression, and we finally have that now,' said Abdulla Ghiyas, Chairperson of the Maldives Marketing and Public Relations Corporation (MMPRC) or 'Visit Maldives' as the state-owned tourism promotion authority brands itself. The swanky, new terminal includes 47 check-in counters, six self-service kiosks, 20 departure immigration counters, six boarding gates, and 12 aerobridges, and aims to serve 7.5 million passengers annually, or over thrice its current capacity. The largest structure to be built in the Maldives, the new terminal's design showcases the Maldives's identity through traditional motifs and wave patterns. According to officials of the Maldives Airport Company Limited (MACL) and Tourism department, the facility has come up at a cost of $ 585 million, that the Muizzu administration raised through loans from the Saudi Fund for Development, the OPEC Fund for International Development, the Kuwait Fund for Arab Economic Development, and the Abu Dhabi Fund for Development, in addition to allocations in the national budget. Detractors contend that the airport terminal has come up after nearly a decade after it was envisaged, with three successive leaders attempting to take the project forward, while incurring higher costs. The terminal came into focus initially in the context of former President Abdulla Yameen abruptly terminating Indian infrastructure conglomerate GMR's contract to run the main airport of Maldives. The idea of a new terminal also fit into President Yameen's plans to expand the country's main airport with a $800-million Chinese loan, an initiative he launched in 2016. Despite sharp tensions among various political camps that make up the Maldives's ruling establishment, everyone agrees that the country desperately needed the new terminal, and see its recent launch is important for its economy. However, while admitting that it is 'crucial' for the Maldivian economy that the new airport terminal is fully operational soon, chairperson of the Opposition Maldivian Democratic Party Fayyaz Ismail described it a 'debt-laden, cost-overrun project' with years of delay. 'If the initial airport project awarded in 2010 had not been terminated on spurious grounds, it would have been opened in 2014, and our economy would have tripled by now without any debt to the nation. The debt related to the airport is nearly a third of our foreign debt,' he told The Hindu, referring to the contract awarded to GMR in 2010, during former President Mohamed Nasheed's time in office. The termination of the project, Mr. Ismail said, was the 'most stupid thing' a government did in recent times, blaming the country's current debt burden squarely on the move. President Yameen's 2012 decision reflected his hostility towards India, that would only grow in the following years, especially when he sought to challenge his successor Ibrahim Mohamed Solih's administration that pursued an 'India first' foreign policy. As Mr. Yameen stepped up his 'India Out' campaign, it eventually became a useful poll plank for incumbent President Muizzu, who rose to office in 2023. President Muizzu's first year in office saw a persisting strain in Maldives-India ties. But a year later, the relationship was reset, and evident in Prime Minister Narendra Modi's state visit to the island nation last month, on the occasion of its 60th anniversary of Independence. India's $ 400 million currency swap in 2024, and subsequent economic assistance was 'pivotal' for the country's economic stability, President Muizzu acknowledged during Mr. Modi's visit. Meanwhile, Maldives tourism officials said they hope Indian tourists will return to the island in large numbers, putting behind past tensions that sparked a loud 'Boycott Maldives' campaign in India. The call that went viral on Indian social media early in 2024, led to a sharp decline in numbers last year, but things are looking up now, according to Tourism sector representatives in the Maldives. Authorities have set an ambitious $ 5 billion target for tourism revenue this year. A 9 % uptick in arrivals has been recorded from January to June 2025, compared to the same period last year. The Maldives Monetary Authority, too, pointed 'robust arrivals' from China, the country's top source market, and the other markets in Europe. Those in India's tourism industry see PM Modi''s recent visit 'generating optimism' about increasing Indian tourist arrivals, as the Maldives aims to attract 300,000 Indian visitors in 2025. 'The Maldives government has been working to attract Indian tourists through various initiatives, including improving air connectivity, targeted marketing, and appointing actor Katrina Kaif as its brand ambassador,' said Jyoti Mayal, Chairperson, Tourism & Hospitality Skill Council and the former president of the Travel Agents Association of India. India currently ranks six among the Maldives's source markets. From January to June this year, a total of 66,501 Indian tourists visited the country. Through roadshows and other promotional efforts, including through young Maldivians' interest in Bollywood, authorities in Male are keen to build bridges. 'I believe numbers will come back, though it may take a bit longer, as the sentiments of the traveller have been hurt,' Ms. Mayal added. (The writer was invited by Visit Maldives for the inauguration of the new terminal at Velana International Airport)
The Hindu
a day ago
- The Hindu
Government approves MERITE scheme to strengthen technical institutes
The Union Cabinet has approved a proposal to implement the Multidisciplinary Education and Research Improvement in Technical Education (MERITE) scheme in 275 institutions across the country – 175 engineering institutes and 100 polytechnic colleges – Union Minister Ashwini Vaishnaw said at a Cabinet briefing on Friday (August 8, 2025). A government statement said MERITE would work as a Central Sector Scheme with a total financial implication of ₹4,200 crore to be spent in five years, between 2025-26 and 2029-30, adding that ₹2,100 crore will come as an external assistance from the World Bank in the form of a loan. The Education Ministry, in its statement, said the scheme is meant to 'improve the quality, equity, and governance' in the selected technical institutes by interventions aligned with the National Education Policy 2020. Prime Minister Narendra Modi lauded the scheme and posted on X, saying, 'Research, innovation and skilling will be significantly boosted with this Cabinet decision to support 'Multidisciplinary Education and Research Improvement in Technical Education'.' Education Minister Dharmender Pradhan said the scheme will empower and provide employability to over 7.5 lakh students in India, adding, 'Hon'ble PM Shri @narendramodi ji has placed unprecedented focus on transforming and revolutionising India's education landscape.' The outcomes of the scheme include preparing digitalization strategies in participating States/UTs, developing guidelines for multidisciplinary programmes in technical courses, increasing learning, employability skills, and transition rates across student groups, strengthening research and innovation among others, the government statement said. It said that there will be a focus on 'development of future academic administrators, especially women faculty'. The project appraisal report prepared by the World Bank for the scheme in 2023 had said that the 'overall research productivity of faculty members in engineering education is low, and the research environment needs improvement' and that 'most engineering institutions have weak research and innovation linkages with industry and society'. The Education Ministry said on Friday (August 8, 2025) that the scheme's outcomes will include better quality assurance and governance mechanisms, an increase in accreditation, better technical education institutions, and a relevant market-aligned curriculum, among others. It will be implemented in government engineering institutions and polytechnics in all States and UTs, adding that institutions like IITs, IIMs, and regulatory bodies such as AICTE, NBA, will 'play a significant role in the scheme implementation'. The interventions for students will include offering internships, updating curricula to align with the industry, organising faculty development programmes and setting up research hubs. Support will also be given for 'incubation and innovation centres, skill and maker labs, and language workshops'.
