One year ago, on October 13, The Prime Minister of India launched “PM – GATI SHAKTHI (Strength of speed) – National Masterplan for Multimodal Connectivity”, i.e., Connectivity to various ECONOMIC ZONES like textile clusters, pharmaceutical clusters, industrial corridors, fishing clusters, agricultural zones!
The idea behind is to BUILD INFRASTRUCTURE (Integrating schemes like Bharat mala, Sagar mala in addition to development of Inland waterways, ports etc.,), thereby ensuring LAST MILE CONNECTIVITY for ATTRACTING COMPANIES and thus FASTRACK ECONOMIC GROWTH!
For commoners, transport time gets highly reduced!!
The recent estimation that $1.2 trillion GATI-SHAKTHI PLAN would attract factories from CHINA has brought the scheme to light for the potential it has, in years to come!
WHY GATI- SHAKTHI?
- To DIVERSIFY SUPPLY CHAINS
- The significance of which gained precedence during COVID-19 pandemic when the global supply chains were disrupted because of CHINA!
- To serve as a NEW MARKET
- With a population of ~1.3 billion people & with the economic growth, highly dependent on consumption expenditure, Companies prefer India for talented pool of workers with considerably cheap wages.
- INVEST IN INDIA
- Investments is what transpires a country to DEVELOPED COUNTRY STATUS with case in point, INDIA.
The Government’s role in attracting investments is not only dependent on the policies it makes, but also on Logistics & other facilities the country provides!!
WHAT HAS GOVERNMENT OF INDIA DONE IN THIS REGARD?
To streamline the process of Investments & take Indian Manufacturing to the global stage, the Government has created a DIGITAL PLATFORM where 16 MINISTRIES COORDINATE to provide a ONE-STOP SOLUTION ( approval, certification etc.,)
Over 197 critical infrastructure gap projects are identified in last 1 year!
HOW DOES THIS BENEFIT INDIA?
- Transparency in investments (Digitalized platform)
- FastTrack pending projects
- 40% delays are due to Land acquisition
- 35% due to delay in providing clearances!
- 15% due to delay in verification!
- Removes the role of middlemen
- Reduce Logistics cost – which is 14% of GDP (very high compared to China)
- MODERNISE MANUFACTURING!
WHY COMPANIES WANT TO EXIT CHINA?
CHINA, being called “Factory of the World” for almost 3 decades, has now been suffering setback!
Thanks to the COVID-19 pandemic!
Since then, Many companies in China planned to move out because of Human rights issues (Uighur Muslims), US-China trade war & business tactics by the Communist Party of China! Most of these companies want to relocate to India, and other Southeast Asian countries (More cheaper than India) like Vietnam, Cambodia etc.,
At present, looming Real-estate crisis is adding fuel to fire (Ever Grande crisis)
Companies like Apple (iPhone14 manufacturing has already begun in India) and Samsung (has made a proposal to build World’s Largest Factory in India to “MAKE FOR THE WORLD”)
India could be best destination as it houses a pool of good English speaking workers, High production capacity, Good Investment climate & Land to build factories.
Inspite of, all these favorable conditions, catering to the supply gaps of the world requires insights from the “GLOBAL MANUFACTURER” i.e., CHINA!!
WHAT CAN INDIA LEARN FROM CHINA TO BE ‘THE INDUSTRIAL POWERHOUSE’?
- Bottom-up reforms with focus at the grassroot level
- Cheap Labour (Most of them were from rural background entering mainstream)
- Low compliance with regard to labour laws!
- Political stability
- Promote Rural Industries
- Getting machinery in return for manufactured goods (like Barter exchange)
- High Government support for infrastructure buildup!
The way Chinese government are ill treating their investors and its own people with ‘Zero Covid policy‘ has made Companies further rethink on shifting their bases!!
If India heads in the right direction, it is competent enough to fill the vacuum that CHINA creates in years to come!!
WHAT ARE YOUR VIEWS??
“If you can’t explain something simple, you don’t understand it well enough” – Albert Einstein.
Howdy readers!!! With strong belief in the power of words, I look forward to help you choose the correct lens to perceive world issues and embrace positivity about the future!
Informative
Thank you😊
Very nicely written. Yes we can expect the same.
Thank u so much😊
It is very informative. Thanks for this. Awaits for more content
Sure. Thank you
You explained it in very simple terms.Appreciate you 👍,also we Thanks Mr.Modi for his long vision.
Thank you very much
Very Informative and explained in a very Simple language
Thank you.