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An ambitious national logistics plan kicks off in India

Logistic News - Published on Thu, 11 Jan 2018

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ET reported that India has kicked off an ambitious national logistics plan to allow seamless movement of inputs and finished goods across the country. Through the plan, the government aims to come out with the most cost-effective method to transport goods till 2035 to provide a competitive edge to the Indian industry. In a first-of-its-kind move, the newly setup logistics division in the commerce department is in talks with logistics providing ministries of railways, roadways, shipping, inland waterways and civil aviation besides the logistics using ministries including food processing, coal and mines to chalk out the plan.

A commerce department official said that “We are making the plan without intruding in others’ territory. The idea is to have various means of transport to complement each other and not compete.”

Various industry estimates have put the size of the Indian logistics market at USD 100-125 billion and growing at 5% per annum. However, Indian logistics costs are said to be one of the highest in the world at almost 13% of the gross domestic product.

Mr Ajay Sahai, director general of Federation of Indian Exports Organisation, said that “While we continue to make longterm plans, we should also look at the low hanging fruit such as reducing digitising and reducing the number of documents required.”

The department is seeking the user ministries’ requirement of transporting their goods till 2035 based on their origin and destination after which it will come out with the most cost-efficient way of movement and reduce logistics costs.

An expert on trade issues said the commerce department should project its requirement with the other ministries and intervene in case of a shortfall. Globally, coastal transportation is the most favoured way followed by railways and then roads. But the trend is reverse in India.

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Posted By : Nanda Koijam on Thu, 11 Jan 2018
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