PM Gati Shakti 2024

PM Gati Shakti 2024

Pillars of India's PM Gati Shakti

Another milestone achieved, which has heralded a new chapter in governance, is the PM Gati Shakti, an integrated plan ensuring multi-modal and seamless connectivity for people, goods, and services.

Coverage of PM Gati Shakti

• It covers 16 ministries and infrastructure like Bharatmala, Sagarmala, inland waterways, dry/land ports, UDAN, etc.

• It is also expected to include social infrastructure like hospitals and universities.

Impact on Business and Competitiveness

• With continuous improvement in digital infrastructure along with the development of clusters, defense corridors, electronic parks, and industrial economic zones like textile clusters, pharmaceutical corridors, fishing clusters, and agri zones, PM Gati Shakti will improve connectivity and make Indian businesses more competitive.

Role of Technology

• It will also leverage technology extensively, including spatial planning tools with ISRO imagery developed by the Bhaskaracharya National Institute for Space Applications and Geoinformatics, to improve ease of living as well as doing business.

• This is a constant endeavor to build next-generation infrastructure.

Telecom

India is the world's second-largest telecommunications market. The telecommunication sector is one of the most powerful sectors impacting the social and economic development of a country.

Subscriber Base

The relevance of the telecom sector has increased immensely. This can be gauged from the fact that the total telephone subscriber base in India has increased from 933.02 million in March 2014 to 1200.88 million in March 2021.

• In March 2021, 45% of subscribers were based in rural India and 55% in urban areas.

Internet Growth

Internet penetration in the country is increasing steadily, with internet subscribers rising from 302.33 million in March 2015 to 833.71 million in June 2021.

While 67.2% of internet subscribers had narrowband connections and 32.8% had broadband connections in 2015, the composition had reversed by June 2021, with only 4% of subscribers having narrowband and 96% using broadband.

Petroleum, Crude and Natural Gas

Crude oil and condensate production during 2020-21 was 30.49 million metric tonnes (MMT), lower than 32.17 MMT in 2019-20, achieving 94.3% of the target of 32.32 MMT for 2020-21. India depends on imports for over 80% of its crude oil needs.

Natural gas production during 2020-21 was 28.67 billion cubic meters (BCM) as compared to 31.18 BCM in 2019-20, achieving 85.4% of the target of 33.57 BCM.

Crude oil processed during 2020-21 was 221.77 MMT versus 254.39 MMT in 2019-20, achieving 88.1% of the target of 251.66 MMT. The shortfall in crude oil processing was mainly due to lower demand for petroleum products during COVID-19.

Renewable Energy – Solar, Wind, Biomass and Small Hydro Energy

India has witnessed the fastest rate of growth in renewable energy capacity addition among all large economies during the last 7.5 years, with renewable energy capacity growing by 2.9 times and solar energy expanding by over 18 times.

• Renewable energy (excluding large hydro) constitutes over 24.71% of the country's installed power capacity and around 10.7% of the electrical energy generation for the year 2020-21.

• As of 31 October 2021, India's total renewable energy installed capacity (excluding hydropower above 25 MW) has reached over 103.05 GW.

During the last 7.5 years, if large hydro is included, the share of renewable energy in electric installed capacity is estimated to be about 38.27% (as of October 2021), and its share in electric energy generation is estimated to be about 26.96% (for the month of August 2021).

[Source: ES 2021-22]

Power

The total installed capacity has increased from 356,100 MW in March 2019 to 370,106 MW in March 2020.

Further, the generation capacity increased to 373,436 MW in October 2020 and comprised of:

• 231,321 MW of thermal

• 45,699 MW of hydro

• 6,780 MW of nuclear

• 89,636 MW of renewables and others

The capacity addition in the power sector was mainly driven by the government in FY20.

The decline in energy deficit may be partially attributed to enhanced energy efficiency and improved energy intensity in India.

• The energy intensity of India (at 2011-12 prices) decreased from 65.6 toe per crore rupees in FY12 to 55.43 toe per crore rupees in FY19.

• At the same time, the per capita consumption increased from 0.47 toe in FY12 to 0.58 toe in FY19.

Mining Sector

Minerals are valuable natural resources that are finite and play a key role in the overall economic development. The mining sector is one of the core sectors of the economy.

Mineral Production

India produces as many as 95 minerals, which include:

• 4 hydrocarbon energy minerals (coal, lignite, petroleum & natural gas)

• 5 atomic minerals (ilmenite, rutile, zircon, uranium, and monazite)

• 10 metallic

• 21 non-metallic

• 55 minor minerals

The Gross Value Added (GVA) of the mining and quarrying sector in FY20 was ₹3,93,102 crores (at current price), accounting for about 2.1% of the overall GVA during FY20.

The production value of the major minerals increased by 2.3% in FY20 as compared to 22.4% growth in FY19.

[Source: ES 2020-21]

Gold Reserves in India

As per National Mineral Inventory data, the total reserves/resources of gold ore (primary) in the country have been estimated at 501.83 million tonnes as of 1.4.2015.

• Out of these, 17.22 million tonnes were placed under the reserves category, and the remaining 484.61 million tonnes under the remaining resources category.

State-wise Gold Reserves

In India, the largest resources of gold ore (primary) are located in:

• Bihar (44%)

• Rajasthan (25%)

• Karnataka (21%)

• West Bengal (3%)

• Andhra Pradesh (3%)

• Jharkhand (2%)

The remaining 2% of the resources of ore are located in Chhattisgarh, Madhya Pradesh, Kerala, Maharashtra, and Tamil Nadu.

National Logistics Policy

The National Logistics Policy (NLP) was launched in 2022. It lays down an overarching interdisciplinary, cross-sectoral, multi-jurisdictional, and comprehensive policy framework for the logistics sector.

The policy complements the PM GatiShakti National Master Plan. While the PM GatiShakti National Master Plan is aimed at integrated infrastructure development, the National Logistics Policy is envisaged to bring efficiency in logistics services and human resources through:

• streamlining processes

• regulatory framework

• skill development

• mainstreaming logistics in higher education

• adoption of suitable technologies

Its vision is to develop a technologically enabled, integrated, cost-efficient, resilient, sustainable, and trusted logistics ecosystem for accelerated and inclusive growth.

[Source: INDIA 2024]

Make in India

The Make in India initiative was launched in September 2014 to facilitate investment, foster innovation, build best-in-class infrastructure, and make India a hub for manufacturing, design, and innovation.

It is one of the unique Vocal for Local initiatives that promoted India's manufacturing domain to the world. The idea is to "Make in India for the World."

Key Achievements

The "Make in India" initiative has significant achievements and presently focuses on 27 sectors under Make in India 2.0.

• The Department of Promotion of Industry and Internal Trade (DPIIT) coordinates action plans for 15 manufacturing sectors, while the Department of Commerce coordinates 27 service sector plans.

• Investment outreach activities are done through ministries, state governments, and Indian missions abroad for enhancing international cooperation and promoting both domestic and foreign investment in the country.

[Source: INDIA 2024]

Startup India

According to INDIA 2024, the Startup India initiative was ushered in in 2016.

Objective

• The initiative aims at fostering entrepreneurship and promoting innovation by creating an ecosystem conducive to startup growth.

Three Pillars of Support

The initiative strives to provide an impetus to the entrepreneurial setup across three major pillars:

1. simplification and handholding

2. funding support and incentives

3. industry-academia partnership and incubation

Achievements

Since the launch of the initiative, several strategic amendments to the existing policy ecosystem have been introduced.

As of 15th May 2023:

• A total of 99,371 startups have been recognized by DPIIT across 57 sectors in 674 districts, with at least one startup from every state and UT.

• They have created over 10.49 lakh jobs since 2016.

[Source: INDIA 2024]

Seed Fund Scheme

DPIIT also created the Startup India Seed Fund Scheme (SISFS) with an outlay of INR 945 crore to provide financial assistance to startups for:

• proof of concept

• prototype development

• product trials

• market entry

• commercialization

It will support an estimated 3,600 entrepreneurs through 300 incubators in the next 4 years.

[Source: INDIA 2024]

Limited Liability Partnership (Amendment) Act, 2021

The Limited Liability Partnership (Amendment) Act, 2021, became functional in August 2021.

Key Features

• This act seeks to amend the Limited Liability Partnership Act, 2008.

• It converts certain offenses into civil defaults and changes the nature of punishment for these offenses.

• It defines small LLP.

• Provides for appointment of certain adjudicating officers.

• Establishment of special courts.

Final Thoughts

India’s development is being shaped by PM Gati Shakti, integrating 16 ministries to boost multi-modal connectivity and competitiveness. The telecom sector has grown massively, crossing 833 million internet users by 2021. While crude oil production is import-dependent, renewable energy has expanded rapidly, especially solar power.

The power and mining sectors continue to drive capacity and mineral output and reduce energy deficits. At the same time, Startup India has fostered a vibrant entrepreneurial ecosystem, creating over 10 lakh jobs since 2016, supported by schemes like the Seed Fund Scheme.

Legislative reforms such as the LLP Amendment Act 2021 further aim to ease compliance and promote innovation in India’s business landscape.