• UGI USER
  • Feb 13, 2023
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A robust infrastructure sector is indispensable for putting the country in a consistent socio- economic growth trajectory. Analyze the statement and evaluate the role of PM-Gatishakti and National Infrastructure Pipeline (NIP) in infrastructure development of the country?

Approach:

  • Introduce by highlighting the importance of infrastructure in the country.
  • In the body of the answer, discuss the role of infrastructure in socio-economic growth of the country.
  • In the next part of the body, discuss various bottlenecks in the infrastructure sector.
  • In the last part of the body, discuss how NIP and PM-GATISHAKTI can aid in the infrastructure development in the country.
  • Conclude the answer with highlighting government efforts towards sustainable infrastructure creation.

According to a World Bank report, 1% increase in investment in the stock of infrastructure leads to a corresponding 1% increase in the GDP of a nation. A robust infrastructure sector is indispensable for a consistent socio-economic growth trajectory as: –

  • Infrastructure development in agriculture would help in increasing farm income. E.gAgriculture Infrastructure Fund can augment infrastructure facilities; Krishi Udan will enhance market reach etc.
  • Road construction, railway construction etc., has led to increase in employment and act as a force multiplier for the economy. E.g.,Indian railways is one of the largest employers in the country.
  • Infrastructure leads to development of backward regions and removal of regional imbalance. E.g., Bharat Mala Pari yojana, Dedicated Freight Corridors.
  • Infrastructure development helps in improvement in social indicators like better healthcare facilities. E.g., e-Sanjeevani telemedicine, 5T transformation of schools in Odisha etc.
  • Infrastructure facilities aids in increasing international trade and exports by developing ports and air facilities. E.g., Sagar Mala Pari yojana, UDAN scheme etc.
  • Focus on digital infrastructure and green infrastructure will ensure sustainable and equitable growth.

There are various bottlenecks faced by infrastructure development in India are:

  • Land acquisition delays, litigation issues, difficulty in environmental clearances etc., lead to time and cost overruns of infrastructure projects. E.g., As per report by the MOSPI, as many as 450 projects have been hit by cost overruns.
  • Lack of consistent and sustainable financing models hinder robust infrastructure creation. E.g., India needs 1 trillion USD for infrastructure creation.
  • Corruption and bureaucratic apathy are major challenges in infrastructure development. E.g., Union Road Transport minister reprimanded bureaucrats for delays in infrastructure creation.
  • Huge logistical cost acts as an added deterrent in creation of infrastructure in the country. E.g., logistics cost in India is 14% of the GDP.
  • Lack of skilled labour and low technological interventions are major factors behind poor pace of infrastructure development in the country.

PM-GATISHAKTI and NIP can help address the bottlenecks in the following manner:

PM-GATI SHAKTI National Infrastructure Pipeline (NIP)

  1. It is an integrated plan ensuring multi-modal and seamless connectivity for people, goods and services.
  • This will help in removing long-standing issues of compartmentalisation and red-tapes. E.g., it will promote: disjointed planning, standardisation, problems with clearances.
  • PM-GATISHAKTI will aid in monitoring the progress of infrastructure projects through GIS platforms, satellite imagery etc.
  • It is estimated that PM-GATISHAKTI will bring down the logistics cost to 8% of GDP from present 14% of GDP.
  • PM-GATISHAKTI will ensure timely creation and utilisation of infrastructure facilities, checking the problem of cost and time overrun.
  • It will enable well-prepared infrastructure projects which will create jobs, and provide equitable access to infrastructure for all.
  • It intends to facilitate supply side interventions in infrastructure development to boost short-term as well as the potential GDP growth.
  • By focusing on world class education institutes and research, NIP will ensure more investment and increased economic growth.
  • NIP will ensure enhanced employment opportunities, health and education facilities in rural areas.
  • NIP will help in ensuring availability of safe and affordable public transport, saving time and in turn improving work life balance.

Infrastructure development can help in attaining the target of 5 trillion USD economy by creating a virtuous cycle between investments, employment and free flow of ideas/innovation.

Additional information:

Infrastructure creation has been seminal in the struggle for India’s independence. Railways, telegraph lines, telecommunication networks etc., enhanced communication and coordination which in turn helped in effective planning. The ideas and ideologies spread at a faster pace, as a result of newly built infrastructure.