Department for Promotion of Industry and Internal Trade releases Report on Logistics Costs in India - (14 Dec 2023)

Commercial

India’s National Logistics Policy, which was launched on 17th September 2022, aims to reduce logistics costs in India. To achieve this objective, the Logistics Division, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry (MoCI) launched a report titled "Logistics Cost in India: Assessment and Long-Term Framework''. The Report has been prepared by the National Council of Applied Economic Research (NCAER), in a consultative manner, with guidance of the Asian Development Bank (ADB) experts and task force members.

The report presents a baseline aggregated logistics cost estimate and a framework for long-term logistics cost calculation. This report recommends a hybrid approach using primary (covering all trade flows, product types, industry trends, OD pairs, etc.) and secondary survey data, as well as real-time Big Data to provide an estimate of logistics cost. To ensure evidence-based decision making for improving logistics efficiency, logistics costs should be estimated on a regular basis. This requires institutionalising the process of data collection in a systematic and periodic manner, for which an MoU with NCAER is planned. Secretary, DPIIT emphasized that, this report offers reliable estimates to instil confidence in investors regarding the efficient movement of goods and services and is poised to play a pivotal role in optimizing logistics efficiency and enhancing India's global competitiveness.

Building a positive perception in the market, systematic approach adopted by the Government will facilitate more effective and evidence-based decision making, planning production cycles, resource allocation, etc. Disaggregated data and a clear understanding of trends in the sector will lead to identification of targeted interventions and effective policy making.

Tags : LOGISTIC COST REPORT RELEASE