 "During the April-September period of 2016-17, the deficit is at USD 25.22 billion. Photo: Reuters")
Reducing the cost of trade by 10% has the potential to generate additional exports of 5-8%. The indirect and hidden costs of trade accrued from delays and unreliable transportation services amount to as much as 38-47% of total transport and logistics costs in India.
A study of pharma, textiles and garments, electronics, and auto components industry by Maersk-Confederation of Indian Industry across these four high-growth trade sectors can be reduced through prioritising digitisation, inland infrastructure development, an efficient regulatory environment and developmental training.
A 10% reduction can boost India's competitiveness and contribute additional revenues of up to $5.5 billion annually.
