The Connectivity Effect

Context: PM Gati Shakti plan can generate positive spill over effects and strengthen India’s economic ties with neighbours.

Significance of Gati Shakti Plan

• Foreign policy angle of Gati Shakti Plan: Coordinated infrastructure development will generate positive effects to deepen India’s regional economic ties. 
• Eg. In 2019, trade between Bhutan and Bangladesh was eased through a new multimodal road and waterway link via Assam.
• Infrastructure modernisation reduce cost and time of doing business: Creating positive impact on price of commodities and developmental targets in neighbouring countries. 
• Connectivity investments at home with strategic decisions: It will impact India’s external economic relations, not only in South Asia, but also with Southeast Asia and the Indian Ocean region. 
• Security perspective: India’s border check posts, known as Integrated Check Posts (ICPs), only have mirror infrastructure with Nepal. Huge scope for expansion.

Way Forward: Avenues for India to ensure the maximum effect of Gati Shakti Plan

• Deepen bilateral consultations with neighbours to gauge their connectivity strategies and priorities. 
• India will require diplomatic skills to reassure its neighbours and adapt to their pace and political economy context.
• Work through regional institutions and platforms: It will help India to develop a regional vision and standards for connectivity, reducing bilateral transaction costs.
  • Considering a defunct SAARC, focus shall be on BIMSTEC and BBIN.
• Cooperate more closely with global players who are keen to support its strategic imperative to give Indo-Pacific an economic connectivity dimension like Asian Development Bank and the World Bank, Japan, the US, Australia, EU and ASEAN. 
• Global external connectivity dialogues: To give the Gati Shakti plan a truly regional and global dimension and help India achieve its developmental targets at home.