Karnataka’s upcoming Logistics Policy targets efficiency and cost reduction

In a significant move, Karnataka is gearing up to introduce a comprehensive logistics policy aimed at alleviating industry cost challenges. Gunjan Krishna, the Commissioner for Industrial Development and Director of Industries and commerce for the Government of Karnataka, shared the development at the BCIC Manufacturing Conclave on Friday, revealing that a draft policy is in progress.

Krishna highlighted key aspects of the forthcoming policy, emphasizing its focus on enhancing efficiency, reducing costs, and simplifying logistics operations, warehousing, and technology integration. The policy aims to streamline the business environment, providing a single-window clearance for various aspects, including pollution-related concerns, and facilitating easy access to licenses. It also proposes the establishment of major industrial corridors to expedite the movement of goods, ultimately reducing turnaround times.

Krishna pointed out the current inefficiencies in the logistics system, noting that 14% of expenditure is allocated to logistics in the state. She acknowledged the challenges posed by the western ghats, affecting port operations along the western coast. The policy intends to address these challenges, fostering a more efficient and cost-effective logistics ecosystem.

Beyond logistics, the Karnataka government is actively working on enhancing industrial infrastructure, offering plug-and-play facilities to attract foreign companies. Special attention is given to supporting the growth of micro, small, and medium enterprises (MSMEs) by improving access to finance, technology, markets, and efficient supply chains.

Karnataka, being the fourth-largest contributor to India’s MSME GDP, aims to strengthen its position as a manufacturing hub. Krishna highlighted the state’s focus on promoting electronic component manufacturing, aerospace and defense, textiles, and electronics manufacturing, including semiconductors.

To address information gaps for MSME owners, the government plans to launch a platform integrating global market information in a user-friendly “chat-GPT way” within the next 2-3 months.

Krishna emphasized the state’s commitment to skill development, attracting foreign companies due to its skilled workforce. She also acknowledged the challenges posed by post-pandemic scenarios, including climate change, geopolitical dynamics, the shift towards an AI-driven economy, and global demographic changes.

L Krishnan, Managing Director of Taegutec India, stressed the importance of proactive industry involvement in achieving India’s $8.3 trillion export goal by 2047. While acknowledging government efforts, he emphasized the industry’s role in planning, preparing, and performing with a sustainable approach across products, processes, and people.

Leave a Reply

Your email address will not be published. Required fields are marked *

LATEST NEWS