Most developed and emerging economies regularly estimate their logistics costs and employ 
performance indicators to track the efficiency of logistics operations. For India, too, systematic measurement of logistics costs is imperative to benchmark its performance vis-à-vis competing economies, and to identify areas for improvement. The vision of Viksit Bharat—a developed India by 2047—further reinforces the urgency of building a world-class logistics ecosystem that reduces costs, enhances competitiveness, and strengthens supply chain for both internal and EXIM trade.
In the Review, we summarise the economic and policy developments in India; monitor global developments of relevance to India; and showcase the pulse of the economy through an analysis of high-frequency indicators and the heat map.
See all issues of the Monthly Economic Review
Rural connectivity plays a pivotal role in driving socio-economic transformation in agrarian economies like India, where access to markets, essential services, and institutional infrastructure remains limited in many regions. In this context, the Pradhan Mantri Gram Sadak Yojana (PMGSY), launched in 2000, stands as a flagship rural road development programme aimed at providing all-weather road connectivity to unconnected habitations. Over the years, PMGSY has evolved through multiple phases, expanding its scope from basic connectivity to the consolidation and integration of rural roads with larger economic and social frameworks.
Recognising the need for a comprehensive and updated evaluation of the programme’s long-term impact, the National Rural Infrastructure Development Agency (NRIDA), Ministry of Rural Development, has entrusted this study to the National Council of Applied Economic Research (NCAER). The primary objective of this study is to evaluate the impact of the Pradhan Mantri Gram Sadak Yojana (PMGSY) in achieving its core aim of providing all-weather road connectivity to unconnected rural habitations. The study aims to assess the program’s contribution to rural economic development, poverty alleviation, and livelihood enhancement—particularly in the agriculture sector—through improved access to markets, education, healthcare, and other essential services. It also seeks to identify notable changes in rural livelihoods, examine improvements in transportation efficiency, assess reductions in urban migration, and analyze the scheme’s alignment with Sustainable Development Goals (particularly SDG 9). Additionally, the study will evaluate the quality and sustainability of PMGSY roads in comparison to those constructed under other schemes.
While past studies have highlighted several positive outcomes of PMGSY—such as improved market access, adoption of modern agricultural practices, better health and education access, and shifts in migration patterns—the findings have often been mixed and region-specific. Furthermore, as rural India continues to face emerging challenges such as increasing vehicular traffic, climate change, and socio-economic shifts, an updated and comprehensive evaluation becomes essential. This study, therefore, seeks to generate robust, evidence-based insights into the tangible and intangible outcomes of PMGSY. These insights will not only inform future policy directions but also contribute to enhancing the effectiveness, resilience, and sustainability of rural infrastructure development across India.
Investment in renewable energy is essential. While India has made significant strides in renewable energy development, the need for further investment remains substantial. Addressing financial and technological barriers in renewable energy development is essential to reducing carbon emissions and achieving global climate targets. Government financing plays a vital role in the development of renewable energy by providing financial support, encouraging private sector investment, supporting research and development, facilitating infrastructure development, and enhancing public awareness and education. Governments offer grants, subsidies, loans, and tax incentives to make renewable energy projects more viable. The project is assessing the institutional fund flow towards renewable energy sector, especially focusing on government sector fund, re-examining the centre-state resource allocation. Additionally, the study seeks to identify challenges in the renewable energy sector through a stakeholder survey, and suggest policy measures to facilitate the development of renewable energy sector.
Like many emerging economies, India faces two simultaneous fundamental economic challenges– increasing prosperity, and reducing emissions. At present, however, there is little understanding of how to combine a low-carbon energy transition in sectors like electricity or transportation with an ambitious, energy-driven development agenda.
In this project, NCAER will modify its established computable general equilibrium (CGE) model to assess how specific decarbonization strategies in transportation and electricity could best support development goals, and, conversely, how development strategies might drive decarbonization in electricity and transportation.
Specifically, NCAER will modify their established, national CGE model to represent detailed regional energy systems and then run this modified version of the model to explore the implications of multiple electricity and transportation transition strategies. NCAER will compare their results with those of detailed energy system models and, as necessary, make improvements to capture, for example, the rapid evolution of energy technologies that might be spurred by these detailed sectoral policies.
This project will be conducted as part of the Green Macroeconomic Modeling Initiative (GMMI) facilitated by the Bezos Earth Fund – the project team will participate in GMMI diagnostic activities and project meetings and will publish their research results as part of a GMMI special journal issue.
