 "logistics, warehouse, infra")
Intending to make India "Viksit Bharat" by 2047, the Government of India's focus is now on improving connectivity, increasing exports and expanding India's logistics infrastructure. The government is anchoring on policies like "PM GatiShakti's National Master Plan" and "National Logistics Policy", which are effective measures to address the objective. Multiple projects have been identified under the PM Gati Shakti Yojana to enable multi-modal connectivity. These will improve logistics efficiency and reduce costs. Decongestion of high-traffic corridors will result in improving operations, which in turn would result in safety and higher travel speeds for passengers. These corridors, along with dedicated freight corridors, will accelerate India's GDP growth and reduce logistic costs.
Also, Prime Minister Narendra Modi has placed an unparalleled emphasis on connectivity to realise the vision of positioning the Northeast as India's growth engine through initiatives such as the Prime Minister's Development Initiative for North Eastern Region (PM-DevINE). India's North Eastern Region (NER) shares international borders totalling 5,812 kilometres with China, Bhutan, Myanmar, Bangladesh, and Nepal, making the region a gateway with immense potential for conducting trade and maintaining international connections with East and Southeast Asia. However, despite its immense potential, the region has historically faced challenges in terms of connectivity and logistics infrastructure. Acknowledging the significance of tackling these concerns, multiple endeavours by the Indian government, such as the Act East Policy and North East Special Infrastructure Development Scheme (NESIDS), have initiated a range of efforts in the NER intending to unleash its economic potential and foster inclusive growth.
Furthermore, efforts are underway to enhance connectivity between the NER and Bangladesh using ports like Chattogram and Mongla for transit and trans-shipment of cargo. The recent clearance by Bangladesh for the use of these ports by India is a significant development that is expected to reduce the time and cost required to transport goods to the northeastern states by nearly one-third, compared to the currently utilised Siliguri route. In addition to port infrastructure, the government is also focusing on upgrading road, rail, and air transportation networks in the NER. The Special Accelerated Road Development Programme (SARDP) aims to improve over 7,000 kilometres of roads in the region, enhancing connectivity both within the NER and with the rest of the country. Efforts are underway to increase railway network coverage and improve connectivity with neighbouring countries like Bangladesh, Myanmar, Bhutan, and Nepal. Between 2014 and 2022, 893.82 kilometres of rail tracks were converted to broad gauge, 386.84 kilometres of new lines were added, and 356.41 kilometres of double lines were commissioned in the NER. These developments are expected to improve transport efficiency and facilitate the movement of commodities within the region and beyond. The region's abundant inland waterways present a unique opportunity for cost-effective cargo movement. Efforts are underway to leverage National waterway routes, such as the Brahmaputra and Barak rivers, to enhance connectivity both internally and with neighbouring countries to boost internal and cross-border trade.
Adding another layer of momentum, the Ministry of Ports, Shipping and Waterways (MoPSW) has set up a Gati Shakti Research Chair, the first of its kind, at IIM Shillong, the objective being to add research and training prowess to the PM GatiShakti Master Plan for the region. The institute, known for its global, inclusive and innovative spirit, is the sole IIM in the NER. This collaboration, inaugurated by Sarbananda Sonowal, Minister of Ports, Shipping and Waterways, at IIM Shillong on February 23, 2024, is set to accelerate action and social impact in the crucial logistics sector, which aligns perfectly with the institute's mission of transforming management to reinvent tomorrow. The institute's commitment to generating and disseminating knowledge will be instrumental in addressing critical issues like infrastructure development, multi-modal connectivity, and supply chain management through its innovative leadership and extensive research capabilities. Furthermore, IIM Shillong's emphasis on international ties aligns perfectly with PM Gati Shakti's goal of fostering deeper global trade and investment. With its combined strengths, this partnership holds immense potential to transform the Indian logistics landscape, especially in the region, paving the way for a more competitive and sustainable future.
Through its wide-encompassing initiatives, the government's focus on developing logistics infrastructure in the NER marks a significant step towards unlocking the region's economic potential and promoting inclusive growth. By improving connectivity and reducing logistical barriers, these initiatives are expected to create new opportunities for trade, investment, and employment, ultimately driving the region's development and integration into the broader Indian economy. As these infrastructure projects progress, they will be crucial in transforming the NER into a vibrant economic hub and fostering greater prosperity for its people.
Prof Abhishek Vashisth teaches operations management and quantitative techniques at IIM Shillong
