Govt Accelerates PM Gati Shakti to Cut Logistics Cost Below 8%

The Government of India has intensified efforts to accelerate the PM Gati Shakti National Master Plan, aiming to reduce the country’s logistics cost to below 8% of GDP. This strategic initiative is expected to strengthen India’s global competitiveness by creating a more integrated, efficient, and technology-driven logistics ecosystem.

What is PM Gati Shakti?

Launched to ensure seamless multimodal connectivity, PM Gati Shakti brings together 16 key ministries on a single digital platform. The initiative focuses on coordinated planning and execution of infrastructure projects across roads, railways, ports, airports, waterways, and logistics parks, eliminating silos that often delay projects.

Key Focus Areas

The government is prioritising the development of Dedicated Freight Corridors (DFCs), Multimodal Logistics Parks (MMLPs), and last-mile port connectivity. Special emphasis is being placed on digitisation, asset mapping, and real-time project monitoring to reduce transit time and operational inefficiencies.

Impact on Logistics Cost

India’s logistics cost currently stands at around 13–14% of GDP, significantly higher than developed economies. By improving infrastructure coordination and reducing delays, PM Gati Shakti aims to cut transportation time, fuel consumption, and warehousing costs, directly benefiting manufacturers, exporters, and MSMEs.

Boost to Trade and Manufacturing

Improved logistics efficiency under PM Gati Shakti is expected to support initiatives like Make in India and Atmanirbhar Bharat. Faster cargo movement and reliable supply chains will enhance export competitiveness and attract global investments in manufacturing and logistics.

Way Forward

With accelerated execution, policy support, and private sector participation, PM Gati Shakti is poised to transform India into a globally competitive logistics hub, driving economic growth while ensuring sustainable and efficient infrastructure development.