PM Gati Shakti: India's Rs 100 Lakh Crore Mega Project Aims To Snatch Factories From China

Half of all infrastructure projects are delayed in India, whereas one in four runs over its estimated budget. The solution? In Prime Minister Narendra Modi¡¯s opinion, technology is the solution to these perennial and notorious bottlenecks.

India¡¯s Rs 100 lakh Crore Project To Snatch Factories From China

Under a Rs 100 lakh crore ($1.2 trillion) mega project called PM Gati Shakti, which is the Hindi word for the strength of speed, PM Modi¡¯s administration is creating a digital platform that combines 16 ministries. The portal will offer investors and companies a one-stop solution for the design of projects, seamless approvals and easier estimation of costs, as per ET.

¡°The mission is to implement projects without time overrun and cost overrun,¡± Amrit Lal Meena, special secretary of logistics in the ministry of commerce and industry, said in an interview in New Delhi. ¡°Global companies choosing India as their manufacturing centre is the objective.¡±

pib.gov

The report mentioned that fast-tracking projects will give India an advantage, especially with China still largely closed to the outside world and companies increasingly adopting a China-plus-one policy, finding other countries to expand in or source from, to diversify their businesses and supply chains. Asia¡¯s third-largest economy not only offers cheap labour but also a talent pool of largely English-speaking workers even though rickety infrastructure keeps many investors away.

Reducing red tape through technology is crucial for India to unclog its stalled infrastructure projects. Of the 1,300 projects, Gati Shakti¡¯s portal currently oversees, almost 40% were delayed due to issues related to land acquisition, and forest and environment clearances, resulting in cost overruns, according to Meena. At least 422 projects had some issues and the portal resolved problems in some 200 of those.

Under Gati Shakti, the government, for example, will reportedly use technology to ensure that a newly constructed road isn¡¯t dug up again to lay out phone cables or gas pipelines, according to a government agency promoting investments in India. The plan envisages modelling infrastructure projects along the lines of what Europe did after the Second World War or what China did between 1980 and 2010 to raise the nation¡¯s ¡°competitive index,¡± according to Invest India, the government agency which is a National Investment Promotion and Facilitation Agency that helps investors looking for investment opportunities and options in India.

¡°Today¡¯s India is committed to investing more and more to develop modern infrastructure and it is taking every step to ensure projects do not face roadblocks and get delayed,¡± PM Modi had said in a speech last year inaugurating the program, the report states.

¡°Quality infrastructure is the key to kick-start several economic activities, and create employment on a large scale. Without modern infrastructure, all-round development cannot happen in India."

Samsung Electronics Co. opened the world¡¯s largest mobile phone factory in the country in 2018. On the other hand, home-grown Ola Electric Mobility Pvt has pledged to build the world¡¯s biggest electric scooter factory locally. Apple too began the production of iPhone 14 in India recently.

Also Read: Why China's Billionaires Want To Flee The Country

China Filling The Void In Russia

reuters

While India plans to snatch China's factories, China on the other hand has been filling the void in Russia's market amid an exodus of brands. Chinese cars, televisions and smartphones have been replacing German and South Korean imports in Russia as its market is reshaped by sanctions and an exodus of brands in the wake of the ongoing war with Ukraine. Click here to read more about it.

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