(a) "PM Gati Shakti will help bring down cost overrun of projects: Modi" what is your

view on this?
a)For me PM Gati Shakti is just a vision now .It will take at least 10 to 15 years for this
innovative project to get "visibility." The basic explanation is that the budget allocation for
infrastructure 2021–22 (roads and bridges) is Rs 60,261 Crs (less than 1 lakh crore), which falls
short of our existing expectations by 7 to 9%. Gati Shakti is expected to cost 100 lakh crores to
build. So we're talking about something 100 times bigger than what's now possible.

According to the RBI and World Bank's pre-pandemic economic recovery forecast, spending 1
lakh crore on infrastructure development will take at least another year. This is something that
the government is also aware of.

So, As a first baby step, the Network Planning Division heads will create an Integrated
Multimodal Network Planning Group (NPG). The goal is to link all ministries and agencies (both
state and federal) to share and integrate infrastructure planning and project proposals. Railways,
civil aviation, petroleum, MEITY, shipping, road transport, textiles, and food processing are
among the 16 ministries represented.

> Technologies such as Geographic Information System-based Enterprise Resource Planning

with 200+ levels of evidence-based decision-making, as well as route planning tools, dashboard-
based periodic monitoring, and the most up-to-date satellite imagery, will be developed.

>It also makes use of ISRO satellite images and base maps from the Survey of India.

>BISAG maps will be visualised by the general public, including the private sector, resulting in
increased efficiency.

The government has previously said that it would be finished in 2024–25. This signifies that the
baby step will take four years to complete.

To be honest, this isn't a simple undertaking; it comes with its own set of problems and
roadblocks. Aside from the federal government, state governments must expend money and
resources to digitise their records. Because this database contains information about water pipes,
water bodies, drainage lines, power lines, fibre cables, and other state-owned assets. The Union
government will solely spend on infrastructure. And we still don't know how to implement this
idea in low-income areas.

Yes, Infrastructure development is required in India badly to be the economy we want tio be.

So, sure, Gati Sakthi is a positive move that will help the economy and industrial growth. Low
funding and inexperienced resources, on the other hand, would be a huge obstacle.
Underdeveloped countries will be the source of such issues.

(b) Write three ways how government investment of a country can be boosted to increase
National Income without causing inflation.

An rise in national output/income is referred to as economic growth as well as national

income. (higher real GDP).

Economic development may be divided into two categories:

1. Aggregate demand (AD) is a term that refers to the total amount of money that people
(consumer spending, investment levels, government spending, exports-imports)

2. Aggregate supply (AS) is a term that refers to the supply of goods in bulk (Productive
capacity, the efficiency of economy, labour productivity)

Boosting economic growth

A growth in demand and/or an increase in producing capacity are required:

1. An increase in total demand

For a variety of reasons, aggregate demand can rise.

• Lower interest rates — lower borrowing costs, boosting consumer spending and
investment.

• Higher real earnings — when nominal salaries rise faster than inflation, consumers have
more money to spend.

• Increased export expenditure as a result of higher global growth.

• Depreciation, which reduces the cost of exports while raising the cost of imports, increasing
domestic demand.
• Growing wealth, such as rising house values, encourages people to spend more (as they
gain confidence and the ability to refinance their home).

 three ways how government investment of a country can be boosted to increase National
Income without causing inflation.

1. Agricultural Sector Investment: Because agriculture accounts for the majority of our
national revenue, meaningful actions should be implemented as soon as possible to grow
the agricultural sector throughout the country. A new agricultural strategy should be
extensively embraced throughout the country to increase agricultural production by using
better HYV seeds, fertilisers, insecticides, improved tools and equipment, scientific crop
rotation, and other scientific cultivation methods. Immediate actions should be done to
improve irrigation facility coverage as well as waste land reclamation.
2. Industrial Sector Investment: In order to diversify the country's sectoral contribution to
national revenue, the country's industrial sector should be developed to a significant
amount. As a result, small, medium, and large-scale enterprises should all be grown at the
same time, paving the way for increased income and employment.
3. Through government spending and infrastructure investmen ;. The government is in
charge of how much money the country spends on public issues each year. Government
expenditure, on the other hand, is required to boost overall GDP per capita. Indian
residents' salaries have reduced this year, implying lower private consumption. The
government will offer individuals with increased convenience and efficiency in their
work by investing money on building and maintaining roads and bridges, as well as
creating construction employment. Furthermore, by allocating more cash to pay greater
salaries, private consumption will rise once again, encouraging increased corporate
investment and boosting the import-export market. The government would gain from the
economic boost caused by spending a particular amount of money.