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India Aiming To Reduce Logistics Cost To Less Than 10% Of GDP By 2022

Capital Market 

India's sector is highly defragmented and the aim is to reduce the cost from the present 14% of GDP to less than 10% by 2022, according to an update from the India's sector is very complex with more than 20 government agencies, 40 partnering government agencies (PGAs), 37 export promotion councils, 500 certifications, 10000 commodities, 160 billion market size. It also involves 12 million employment base, 200 shipping agencies, 36 logistic services, 129 ICDs, 168 CFSs, 50 IT ecosystems and banks & insurance agencies. Further, 81 authorities and 500 certificates are required for EXIM.

A National Logistics Portal is being developed by the to ensure ease of trading in the international and domestic markets. The portal will link all the stakeholders of EXIM, domestic trade and movement and all trade activities on a single platform. In this year's budget speech, had announced that the will create a portal which will be a single for trade and will connect business, create opportunities and bring together various ministries, departments and the private sector. Stakeholders like traders, manufacturers, logistics service providers, infrastructure providers, financial services, Government departments and groups and associations will all be on one platform.

As per the Economic Survey 2017-18, the Indian logistics sector provides livelihood to more than 22 million people and improving the sector will facilitate 10 % decrease in indirect logistics cost leading to the growth of 5 to 8% in exports. Further, the Survey estimates that the worth of Indian logistics market would be around USD 215 billion in next two years compared to about USD 160 billion currently. The portal will be implemented in phases and will fulfill the commitment of the to enhance trade competitiveness, create jobs, boost India's performance in global rankings and pave the way for to become a logistics hub.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, August 24 2018. 13:04 IST