Economic Survey 2022-23: PM Gati Shakti and NLP to support India’s manufacturing and export

The Production-Linked Incentive (PLI) scheme, PM Gati Shakti and National Logistics Policy (NLP) will bring competitiveness in India’s domestic manufacturing and export activities, the Economic Survey, tabled by Finance Minister Nirmala Sitharaman in Parliament on January 31, said.

Further the survey said, the expansion of public digital platforms and path-breaking measures such as PM GatiShakti, the National Logistics Policy, and the Production-Linked Incentive schemes to boost manufacturing output will support the economic growth of the nation.

The Economic Survey 2022-2023 reviewed how the economy performed in this fiscal year and the road ahead for the next year.

The survey added the government’s aim to reduce logistics cost through the NLP and improve coordination between ministries will be key in boosting domestic manufacturing in the country.

This boost in domestic manufacturing will attract foreign direct investments in the nation as countries look to diversify their supply chains, the survey said.

For the development of the PM Gati Shakti digital platform, a capital expenditure of INR 1,458 crore has been spent, the survey said.

Launched on May 2022, The GatiShakti Sanchar portal has around 1,950 data layers of 22 ministries/departments and 36 states/union territories mapped up to the village, district, and taluka levels.

As per the survey, following the announcement of the NLP and the first Logistics Ease Across Different States (LEADS) survey conducted in October 2022, 13 states/union territories have prepared and notified their logistics policies.

The survey also said that 12 states/union territories ranked in the 90 percentage under the LEADS survey conducted under NLP. Another six states ranked in the 80 percentage to 90 percentage and only 10 ten states had a score lower than 80 percentage.

The last eight years have seen an ‘unprecedented’ infrastructure expansion with ports and airports having been substantially upgraded, the economic survey said adding that the infrastructure expansion has come at a time of crisis when the capital expenditure by the private sector has been subdued.

The centre’s target for capital expenditure in 2022-23 (BE) was increased sharply by 35.4 percent from Rs 5.5 lakh crore in the previous year (2021-22) to Rs 7.5 lakh crore, of which approximately 67 percent has been spent from April to December 2022.

The implementation of NLP will be carried out through a Comprehensive Logistics Action Plan (CLAP), the survey said highlighting that the aim of the NLP is to reduce logistics costs in India from the range of 14-18 percent of GDP currently to the global benchmark of 8 percent.

NLP was launched on September 17, 2022, addressing the components of improving efficiency in logistics through streamlining processes, regulatory framework, skill development, and mainstreaming logistics among others.

Leave a Reply

Your email address will not be published. Required fields are marked *

LATEST NEWS