Investing in infrastructure development is crucial for India’s economic growth and a vital step towards becoming a developed nation. This article highlights the significance of infrastructure investment in India’s GDP growth and discusses potential areas for investment.
During the COVID-19 epidemic, the logistics industry saw a considerable boost. This is due to a significant shift in customer behaviour, which has resulted in an increase in online shopping and home delivery of items. According to the Confederation of Indian Industry (CII), India would have one of the world’s greatest economies by 2047, with a Gross Domestic Product (GDP) of over $35-40 trillion.
This forecast is based on India’s current economic development trajectory, which has been fueled in large part by factors such as the demographic dividend, improved infrastructure, rising domestic consumption, and a strong startup environment.
The logistics business is important in generating economic growth, accounting for more than 14% of GDP. Investment in infrastructure development is crucial for India’s GDP growth since it increases economic efficiency, productivity, and competitiveness. India can attract more private investment, generate employment, cut transportation costs, and expand market access by creating and maintaining modern infrastructure such as motorways, ports, airports, trains, and digital networks.
Moreover, infrastructure development may improve individuals’ quality of life by giving access to fundamental amenities such as water, sanitation, and healthcare. Nevertheless, accomplishing this goal would need long-term policy support, institutional reforms, and investments in critical industries such as technology. If India can sustain its current rate of growth, it has the potential to become a worldwide economic powerhouse, offering enormous possibilities for its population and enterprises.
Our opinion
Vehicles with zero CO2 emissions should become more common since they minimise pollution. The batteries utilised are long-lasting, providing greater speed and hence speedier delivery. It is critical to ensure pan-India infrastructure and technology adoption with little human intervention and maximum efficiency.
It will not have an impact on the value of human occupations since people will be taught and prepared to manage new technological systems in regular practise. Result-oriented government policies and reduced red tape can smooth down logistical procedures, ensuring a trouble-free and proliferative transport mechanism. Easier movement combined with the least onerous procedures might result in higher profitability.
It is possible to make it work if logistics and government policies are combined.
The government has recognised the importance of logistics in fueling the country’s economic growth and has taken tangible initiatives to create a more efficient and unified logistics environment. One such attempt is the National Logistics Policy, which intends to lower existing logistics costs to levels comparable to those of other developed countries. This approach will improve Indian products’ competitiveness in both home and foreign markets.
Furthermore, in the 2023-24 budget, the government has earmarked additional cash for the logistics industry and expects to give more incentives to improve supply chain management infrastructure.
