What Comprehensive Logistics Cost Assessment Has the Centre Unveiled to Boost Global Competitiveness?
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Synopsis
Discover how India's first-ever comprehensive logistics cost assessment aims to revolutionize the industry. With a hybrid methodology and a focus on global competitiveness, this initiative marks a significant milestone for the nation’s logistics sector. Dive into the details of this transformative step towards making India a global logistics hub.
Key Takeaways
- First comprehensive logistics cost assessment in India.
- Hybrid methodology combines secondary data and surveys.
- Aims to reduce logistics costs and enhance competitiveness.
- Framework captures logistics costs across various factors.
- Supports India's vision of becoming a global logistics hub.
New Delhi, Sep 20 (NationPress) In a groundbreaking move, India is set to unveil a detailed and scientifically formulated assessment of logistics costs, employing a hybrid approach that integrates secondary data and comprehensive nationwide surveys, as announced by the government on Saturday.
This initiative is part of the National Logistics Policy (2022), which aims to create a standardized framework for evaluating logistics costs and benchmarking them against international standards.
During the celebration of ten years of the “Make in India” initiative, Commerce Minister Piyush Goyal introduced a report titled “Assessment of Logistics Cost in India” at an event in the capital.
He underscored that the government has initiated several measures to enhance the competitiveness of logistics and lower the overall cost of conducting business in India.
According to the minister, analyses and reports generated by the Industry and Commerce Departments are crucial in identifying significant issues related to logistics expenses.
Actions such as mapping each Harmonised System of Nomenclature (HSN) code to the relevant line ministry facilitate better coordination and strengthen India’s position in negotiations for free trade agreements (FTAs).
He also pointed out that the establishment of a logistics data bank, the rollout of integrated state and city logistics plans under the SMILE program in partnership with the ADB, and infrastructure projects led by NICDC and other organizations are designed to evaluate existing facilities, enhance transportation and connectivity, and eliminate inefficiencies.
These initiatives, along with reforms like the implementation and optimization of GST, are pivotal in the ongoing efforts to minimize logistics costs, improve the ease of doing business, and enhance competitiveness.
Previously, logistics costs in India were often inaccurately represented, with frequently referenced figures of 13–14 percent of GDP sourced from external studies or incomplete datasets, leading to inconsistent estimates and confusion among policymakers and global stakeholders. The latest assessment prepared by NCAER for DPIIT estimates logistics costs in India at approximately 7.97 percent of total GDP.
The report offers a thorough framework by analyzing logistics costs across various transport modes, product categories, and firm sizes.
It also includes estimates of freight cost per tonne-kilometer and emphasizes the significance of multi-modality in boosting efficiency. By furnishing evidence-based insights, the study fortifies India's ambition to enhance its competitiveness and aligns with the broader goal of establishing the nation as a global logistics hub.
Point of View
India's comprehensive logistics cost assessment stands as a testament to the government’s commitment to enhancing competitiveness. By providing a clear framework and accurate data, this initiative not only aids policymakers but also positions India favorably in the global market. The focus on identifying and addressing key issues reflects a thoughtful approach to improving the logistics landscape.
NationPress
20/09/2025
Frequently Asked Questions
What is the significance of the logistics cost assessment?
The logistics cost assessment is significant as it provides a scientifically-derived estimate of logistics costs in India, which helps standardize measurements and benchmark against global practices.
How does the assessment benefit Indian businesses?
By accurately determining logistics costs, businesses can identify areas for improvement, reduce operational expenses, and enhance competitiveness in the global market.
What methodologies were used in the assessment?
The assessment utilized a hybrid methodology that combines secondary data with nationwide surveys to ensure a comprehensive analysis.
What are the expected outcomes of this initiative?
Expected outcomes include reduced logistics costs, improved ease of doing business, and positioning India as a global logistics hub.
How does this relate to the National Logistics Policy?
This assessment aligns with the National Logistics Policy (2022) by creating a uniform framework for measuring logistics costs and improving competitiveness.
