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International Journal of
Commerce and Economics
ARCHIVES
VOL. 7, ISSUE 2 (2025)
Impact of PM Gati Shakti on MSME supply Chains: evidence from Odisha
Authors
Syed Farhan Hyder
Abstract

The PM Gati Shakti National Master Plan, launched in 2021, marks a paradigm shift in India’s infrastructure and logistics planning through integrated, multimodal, GIS-based coordination across ministries. This paper investigates the early impact of the Gati Shakti initiative on the supply chain efficiency and competitiveness of Micro, Small and Medium Enterprises (MSMEs) in Odisha. Given the critical role of MSMEs in regional employment and economic diversification, especially in semi-urban and tribal belts, infrastructural bottlenecks, such as poor last-mile connectivity, fragmented transport nodes, and high freight costs have historically restricted their growth potential.

Using a mixed-method approach, this study combines survey data from 150 MSMEs across key industrial clusters in Cuttack, Angul, Rourkela, and Berhampur with key informant interviews from industry experts, district-level commerce officers, and logistics coordinators. The analysis further integrates secondary data from the PM Gati Shakti portal, Ministry of MSME reports, and Odisha Industrial Infrastructure Corporation (IDCO) logistics maps. Results show measurable improvements in transit efficiency, intermodal linkages, and the spatial alignment of infrastructure with MSME cluster needs, particularly along NH-16 and eastern corridor zones. However, significant awareness and digital capacity gaps persist—only 38% of surveyed units were aware of the Gati Shakti platform, and access remains limited in remote and tribal districts.

The findings suggest that while Gati Shakti holds promise in transforming MSME logistics landscapes, targeted integration measures are needed to ensure its benefits are widely diffused. The paper concludes with policy recommendations focused on cluster-based planning, digital infrastructure enablement, and establishing Gati Shakti MSME cells at the state level to bridge knowledge and execution gaps
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Pages:54-59
How to cite this article:
Syed Farhan Hyder "Impact of PM Gati Shakti on MSME supply Chains: evidence from Odisha". International Journal of Commerce and Economics, Vol 7, Issue 2, 2025, Pages 54-59
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