DPIIT, NCAER Sign MoU for Comprehensive Logistics Cost Study

The Department for Promotion of Industry and Internal Trade (DPIIT) and the National Council of Applied Economic Research (NCAER) have signed a Memorandum of Understanding (MoU) to develop a framework for assessing logistics costs in India.

Under this MoU, a comprehensive study will be conducted to evaluate logistics costs for the fiscal year 2023-24. The study will analyze cost differentials across various routes, modes of transport, types of products and cargo, and service operations.

Additionally, the MoU will identify key determinants affecting logistics in different sectors. NCAER is tasked with conducting this detailed study and is expected to submit a report within one year.

The signing ceremony was attended by Anil Sharma, Secretary and Operations Director at NCAER, and S K Ahirwar, Joint Secretary at DPIIT.

This initiative aligns with the objectives of the National Logistics Policy (NLP) launched on September 17, 2022, which aims to reduce the logistics cost as a percentage of GDP. Previously, DPIIT released a report titled “Logistics Cost in India: Assessment and Long-Term Framework” in December 2023, prepared by NCAER, providing a baseline estimate and a long-term calculation framework.

“The regular assessment and monitoring of logistics costs are crucial for benefiting both the industry and policymakers. This involves analyzing data on trade flows, product types, industry trends, and origin data pairs. The process necessitates a systematic and periodic institutional framework for data collection,” stated the Ministry of Commerce and Industry.

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