PM Gati Shakti Policy: What’s it? And what’s the Actual Benefit of Logistic Companies from it?

There are many policies coming in favor of logistics by the government aimed at the betterment of the sector. This policy was launched by the Prime Minister of India in the year 2021. This policy primarily focused on completely transforming India’s logistics sector by regulating the existing transportation networks and improving overall economic growth. 

The main aim of this policy is to reduce transportation and other logistics costs and increase profits. And making India a global logistics hub. 

What is the PM Gati Shakti Policy? 

Under the policy, a digital platform called the National Master Plan was created. This platform is made to integrate different infrastructure projects from various sectors, such as railways, roadways, waterways, airways and other urban developments. With this integration, a comprehensive road map was developed, which helps in finding new connectivity routes between the production centers and demand hubs. 

The National Master Plan works as a tool for efficient planning, coordination, and monitoring of these projects, ensuring that resources are optimized and projects are executed on time. 

PM GATI Shakti Plan

The primary aspect of this policy is to break silos between different government departments and different ministries. This can be achieved with better collaboration. This policy ensures that new infrastructures that are being designed will facilitate streamlined movement of goods from one place to another in the overall logistics chain. 

For example, railways and roadways projects will be designed together so that the movement of goods from one mode of transport to another will be done seamlessly and without any unnecessary delays.

The policy is driven by a central data hub, which enables decision-makers to have access to real-time information about ongoing projects and logistics activities. Along with easing the movement, this integration will also help in finding the challenges and areas of improvement in the logistics sector. With the findings, there will be faster implementation of solutions. 

Benefits of PM Gati Shakti Policy for Logistics Companies 

The PM Gati Shakti Policy aims to reduce the logistics cost in India by creating more connected infrastructure and minimizing delays. The other measures taken under the policies were reducing idle time in borders, optimizing fuel consumption and finding better alternatives. Better connectivity ensures logistics companies to streamline their and ensure timely deliveries, especially for time-sensitive e-commerce goods. 

Additionally, this policy enables faster clearance of checkpoints on roadways and other modes of transport, which reduces time consumption and ensures smoother movement of goods. While the government takes all these measures, it is advised that logistics companies need to make data-driven decisions by real-time monitoring through establishing centralized data hubs. This can be done by planning better routes, predicting potential days and other natural calamities. Furthermore, the policy facilitates better infrastructure in remote areas, expanding logistics access to underserved regions and enabling companies to tap into new markets. 

“The Government has utilised the PM Gati Shakti National Master Plan website for logistic route planning, leveraging big data of live running vehicles from e-waybills, FASTag and GPS systems to estimate future transportation demand and enhance logistics efficiency” -observed in a survey

The PM Gati Shakti Policy will greatly benefit e-commerce businesses by improving logistics efficiency, which is crucial for fast deliveries, especially in smaller cities. For logistics companies serving e-commerce, these improvements will help meet the growing demand for quick deliveries. The policy also boosts international trade by streamlining port operations, enhancing port connectivity, and improving air cargo infrastructure. 

Conclusion

In conclusion, The PM Gati Shakti Policy is a significant initiative taken in India’s logistics sector by offering more interconnected and efficient infrastructure for logistics companies. This is a golden opportunity for businesses to enhance their operations and expand their services. The policy mainly aims to increase the logistics sector profits, in return which not only boosts the economy but also enables India to compete more in the global logistics and supply chain landscape. Making it one of the leaders in the logistics sector.