India currently ranks 38th in the World Bank rating for cost of logistics after rising by 16 positions since 2014. As India aims to be among the best 25 countries in the world in terms of lowest logistics cost by 2030, it has prepared a report for Logistics Cost Assessment to bring down the cost of logistics further as per the goals of the National Logistics Policy.
Terming logistics cost assessment as an important milestone for the government, Department for Promotion of Industry and Internal Trade (DPIIT) Special Secretary Sumita Dawra told CNBC-TV18 that help was sought from the National Council of Applied Economic Research (NCAER) to fill the gaps based on extrapolated data where no official data was available.
While a scientific approach was used to identify the variables which were demystified with assistance from the Asian Development Bank (ADB), the report aims to establish a long-term framework for disaggregated data on variables to improve logistics efficiency further.
Disaggregated data implies the information related to variable factors which has been broken into sub-categories, which will include the mode of transportation, seamlessness of logistics, state-wise challenges and the extent of infrastructure deployed for logistics region-wise. The report was also reviewed by the World Bank, which gave feedback to the government while agreeing to establish a baseline and a way to go ahead.
While Dawra pointed out that for a large country like India, averages will vary based on state, commodities & the mode of transportation; she added that the government aims to conduct a primary survey next year onwards to refine the needs of infrastructure & improve processes.
Stating that the government is slated to release the LEADS report for states soon, Dawra agreed that some states have already achieved less than 10% logistics cost. She added that the government is mindful of the fact that lower logistics cost impacts perception for investment. The government aims to achieve a single-digit logistics cost for India by 2030.
India’s National Logistics Policy was launched on September 17, 2022, to make logistics costs cheaper in India.
Also Read:
(Edited by : Sangam Singh)
First Published: Dec 14, 2023 7:28 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
PM Modi's Patna visit: From serving langar to historic roadshow
May 13, 2024 5:13 PM
Shehnai by Ustad Bismillah Khan's kin, ode to Kashi's celebrities: PM Modi's roadshow to showcase Varanasi's grandeur
May 13, 2024 11:03 AM