Propagating efficient logistics as the ‘way to go’ to make India soar high, reduce logistics cost

The one-day workshop on ‘Logistics Cost Framework’ organized by the DPIIT, Ministry of Commerce and Industry in partnership with Asian Development Bank (ADB) was held yesterday in New Delhi, where Piyush Goyal (Union Minister of Commerce and Industry, Textiles, Consumer Affairs, Food & Public Distribution) highlighted that the journey from India@75 to India@100 needs an efficient logistics ecosystem to drive the country through Amrit Kaal to become Atmanirbhar Bharat. The efforts of infrastructure development through several initiatives such as Bharatmala, Sagarmala, Dedicated Freight Corridor (DFC) and the revolutionary PM Gati Shakti Initiative, will bring down India’s logistics cost from double digit to single digit. He suggested taking note of India’s geography, terrain, size and complexities, trade volume and value etc. while calculating the logistics cost. 

Goyal said that that in the last 9 years, India’s GDP growth has moved from being 10th highest to the 5th highest in the world, and will move up further to 3rd highest in the next couple of years. from being the 10th largest country in terms of GDP, India has now become 5th largest country in the world. The impactful infrastructure projects that are going to be implemented during financial year 2023-24 will have a vital role in this development.

He further added that e-commerce, smarter FTAs, adopting international quality standards, good manufacturing practices, leveraging on our successful startups ecosystem, utilizing National Education Policy 2020, drone technology, artificial intelligence, strong PPP collaborations and Centre-State partnerships will work towards catalyzing India’s development. Logistics in India as a policy tool will help achieve ‘Serve the world from India’ and ‘Make in India for the world.’

“Just in 4 years India’s infrastructure is many times better than before’. He also shared how PM GatiShakti NMP has revolutionized the Planning Process through digital surveys. It has helped in reducing time and cost in DPR preparation and infra projects, optimum utilization of financial and human resources.”

Mr. Anurag Jain, Secretary, DPIIT

Dr. Jivisha Joshi, Deputy Secretary, DPIIT also moderated a panel discussion on ‘Other logistics services and the State perspective’ during the logistics cost workshop.

Ms. Sumita Dawra, Special Secretary, Logistics Division, DPIIT, during her closing remarks, acknowledged the approach and methodologies presented by the international and Indian experts during the various regional workshops. She also mentioned that as an outcome of the workshops, a Task Force consisting of members from NITI Aayog, Ministry of Statistics and Programme Implementation (MOSPI), National Council of Applied Economic Research (NCAER), academic experts and other stakeholders will be established for formulating a Logistics Cost Framework in a time-bound fashion. 

The workshop witnessed participation from Ms. Suman Bery, Vice chairman, NITI Aayog; Member Economic Advisory Council to the Prime Minister (EAC PM) Dr. Rakesh Mohan; Director General South Asia Department, ADB Mr. Kenichi Yokoyama, ADB senior functionaries, Senior academicians from international universities; senior officials from relevant Ministries/Departments, and private sector representatives.

During the workshop, views were presented on the importance of logistics cost calculation, as India enters a potential period of sustained growth and development. Academic minds presented existing global frameworks and models for calculation of logistics costs. This workshop brought together the best minds from across the world who have expertise in the logistics domain. 

The key speakers on the significant aspect of logistics cost assessment in the workshop were professors and academicians from Japan, Thailand, Korea and Industry experts. During the workshop it was discussed that there is a need for diagnosis on logistics cost in India, that includes among other aspects, parameters such as optimal transportation modal mix, packaging, warehousing and storage, other administrative and indirect costs. A new possible approach for calculating estimates through Technology driven secondary data sources such as E-Way Bill and Fastag data needs to be explored. 

Leave a Reply

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