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Gati Shakti Masterplan To Accelerate Growth Of Logistics Sector

With the emphasis being placed on an all-inclusive development model, with the majority of focus being on digital integration will not only augur well for the logistics sector, but for the overall growth of the Indian startup economy.

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It is very encouraging seeing the Finance Minister focus on the Gati Shakti masterplan. Infrastructure is one of the key components in the Indian logistics industry. By increasing infrastructural investments, the logistics and transport sector will see drastic growth, allowing for everything from intercity to intracity goods transport to become seamless. From poorly developed highways to a lack of planned routes, several problems plague the transport industry. Transporters are seldom able to move goods without hassles. With the Gati Shakti plan in place, transporters will be able to enjoy multi-modal connectivity, allowing for quicker and more efficient transportation. The mention of focus on productivity enhancement and investment suggests that there will be a greater allocation for technology integration in this sector, and that has been one of the main demands from the stakeholders of this industry.

 Pollution has been on the rise for quite some time. This coupled with the increasing fuel price has led the industry to consider commercial EVs seriously. Schemes like FAME and PLI are already in place to ensure a smooth transition to electric. Another key area that has been mentioned is energy transition and climate action. This along with the plethora of upcoming development opportunities indicate a greater focus ahead on electric mobility in the logistics sector. Overall, the emphasis of the budget seems to be on the right areas. As expected by us prior to the budget reveal, the focus on infrastructure development, energy transition, EVs and technology-based logistics operations has been there in the Union Budget 2022, and that is quite encouraging for us. 

The implementation of these schemes will ultimately help India touch the $5 trillion mark by FY25. It has been estimated that an expense of $1.4 trillion is needed to achieve this. And judging by the recent developments happening in the logistics space, the $5 trillion dream is definitely within our grasp! With the emphasis being placed on an all-inclusive development model, with the majority of focus being on digital integration will not only augur well for the logistics sector, but for the overall growth of the Indian startup economy.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.


Karan Shaha

Co-founder and CEO of Vahak

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