Page 154 - Abhivruddhi

Policy measures in multiple dimensions are critical to make this
inspirational goal a reality. Bringing reforms in agriculture and labour
is a key to achieving the target. India has not been able to push reforms
in these two areas as much it would like, thanks to politicization of the
issue. Infrastructure, manufacturing, promoting entrepreneurship and
digitization are the other pillars that needs to be used to push the growth
structurally. PLI scheme is expected to play a significant role is shaping
new chapter of “Make in India” to boost domestic production. Given the
fact incomes are growing slowly across the globe, the export stimulus to
India’s GDP growth likely to take some more time. Given large population,
domestic market offers significant opportunity and holds the key to India’s
growth in the next few years.
The target can be achieved in a couple of ways. One is the accounting
way, a more cosmetic in nature. Achieve the target with a high growth of
nominal GDP i.e the total market value of all goods and services produced
in a country’s economy over a given period. Higher inflation and a strong
currency accelerate nominal GDP. Over-valued currency, high inflation
rate with low growth and employment however cannot be a strategic
objective. Other alternative, a pragmatic one is via strong infrastructure
push, driven by the public sector increasing the investment rate in the
economy. The multiplier effect then kicks in raising employment, income
and consumption levels. Higher consumption triggers investment from
private players inducing investment accelerator. This ‘real way’ increases
the growth of real GDP, creates job opportunities and keeps inflation
low and stable to raise the standard of living. This is where “Gati Shakti”
initiative is likely to make the difference.
On India’s 75th Independence Day, Prime Minister Narendra Modi
announced that “the Centre will launch ‘PM Gati Shakti Master Plan’, a
Rs. 100 lakh-crore project for developing ‘holistic infrastructure’ and to
and give an integrated pathway to country’s economy”. Economic survey
of 2022 [3] outlines importance of “Gati Shakti” is much more than an
infrastructure plan that will have a ripple effect on the entire Indian
economy. Report states “PM Gati Shakti NMP aims to provide multimodal
connectivity to various economic zones and integrate the infrastructure
linkages holistically for seamless movement of people, goods & services
to improve logistics efficiency. Gati Shakti is a digital platform that will
bring 16 Ministries together for integrated planning and coordinated
implementation of infrastructure connectivity projects like Bharatmala,
Sagarmala, inland waterways, UDAN etc. Economic zones like textile

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