India is expected to be one of the largest economies in the world by 2047 with a GDP of about $35- 40 trillion as per CII estimates from about $3.5 trillion in 2022 which increased by about 2x since 2010. In addition, the country’s industrial output has increased by 56% since 2010, which has supplemented the pace of urbanization which is expected to accelerate by 2047. This exponential economic growth in the country will drive the need, as well as be supported by the development of infrastructure in the future.
To maximize the value of capital investment, integrated infrastructure development is critical. PM GatiShakti National Master Plan, the path-breaking initiative of Government of India, paves the way for inter-ministerial projects to complement each other. This in turn will provide efficient connectivity which will be driven by various schemes such as National Infrastructure Pipeline (from 2019) with a target expenditure on infrastructure development of over $1.8 trillion till 2025. The Government of India has walked the talk, providing an impetus to infrastructure development in the last few years by increasing the infrastructure budget by about 75% post COVID-19 and reforming policies to encourage the private sector participation.
While short-term infrastructure development is well on its way, the development over the next 25 years should be driven by four fundamental objectives – high speed connectivity, safer transport, sustainable mobility, and high-quality customer experience. Achievement of these objectives over the AmritKaal will yield superior quality as well as quantity of infrastructure in the country, making it truly world-class.
High-speed infrastructure development is aimed at providing accessibility to all the districts and their economic & industrial nodes planned under PM GatiShakti National Master Plan to improve India’s logistics efficiency. MoRT&H has embarked on this vision via development of expressways and access controlled corridors under its flagship program of Bharatmala Pariyojana which would enable faster movement.
Multiple Dedicated Freight Corridors are being planned by Indian Railways to improve the freight movement efficiency. To realize the full potential of the planned infrastructure, a network of Multi Modal Logistics Parks and Freight Cargo Terminals is being developed for improving the storage ecosystem in the country. Development of new airports under schemes like UDAN will also make air travel accessible to all citizens. The integrated approach towards the infrastructure development under PM GatiShakti will also ensure this high-speed connectivity is being done in a coordinated manner across ministries, avoiding duplication of effort and minimizing delays.
In line with Sustainable Development Goals 2030, ensuring safety of citizens will be a key focus area of infrastructure development. This would include the design and construction of safer infrastructure that will minimize hazards and will improve safety for users. There is already an increased focus on adopting the latest technologies to reduce accident risks. Indian Railways and MoRT&H have continuously focused on safety via implementation of KAVACH and Advanced Traffic Management System respectively, to achieve the vision of zero accidents. In addition, implementation of more safety features such as Advanced Driver Assistance Systems in vehicles along with the focus on post-accident care to reduce fatalities will further make our infrastructure safer for all.About 7-10% of India’s carbon emissions come from transport, and this will be important as we progress along our Net Zero journey. The era of sustainable mobility is being ushered in with the advent of electricity and alternate fuel-driven transport. India is already at an inflection point in EV adoption, and this will accelerate over the next two decades. In addition, ministries should focus on increasing the share of public transport and 100% use of green technologies in public transport.
Various state governments, such as Andhra Pradesh, Kerala, Maharashtra, Tamil Nadu etc have committed to the adoption of electric vehicles for public transport vehicles. This is also supported by schemes such as FAME-II, PLI for the auto and batteries and other incentives to consumers and the industry. The focus areas now also need to include development of the overall ecosystem beyond just vehicles.
Along with faster, safer, and sustainable travel, convenience plays an important role in realizing the full potential of infrastructure. Ministries have embarked on this journey via development of way side amenities, FASTags to reduce toll congestion, introduction of e-way bills, Digiyatra app for hassle free check-in during air travel, provision of 100% AC coaches in passenger trains etc. to provide a convenient journey to the users. All the relevant ministries are already working on adoption of technology to speed up the clearance processes for efficient freight movement. Efficient clearance processes at MMLPs, Ports and Airports would help in reducing delays in the freight movement.
To achieve this vision of AmritKaal, all the stakeholders will need to come together to develop a multi-year National Transport Strategy which includes wide range of policy measures and investments, such as building new infrastructure, modernizing existing infrastructure, investing in new technologies, improving the regulatory environment, and promoting the use of alternative modes of transportation aiming to improving the efficiency, reliability, and sustainability of the transportation system. The Government of India will need to continue supporting this infrastructure growth over the next couple of decades in a big way. We have already made a positive start through the adoption of the PM GatiShakti National Master Plan across all ministries. It is critical to not take our eyes off the ultimate prize – which is building a large, prosperous economy with world class infrastructure.
Anshuman Sinha and Sriram Ananthapadmanabhan are Partners, and Akash Singh, Principal, Kearney India.
