The Department for Promotion of Industry and Internal Trade (DPIIT) has partnered with the National Council of Applied Economic Research (NCAER) to establish a robust framework for evaluating logistics costs across the country. The memorandum of understanding (MoU) signed between the two entities underscores a strategic effort to streamline logistics expenses and enhance sectoral efficiency.
Under the MoU, signed by Dr. Anil Sharma, Operations Director of NCAER, and Dr. S K Ahirwar, Joint Secretary of DPIIT, the initiative aims to conduct a comprehensive assessment of logistics expenditures in India. This initiative is aligned with the National Logistics Policy (NLP) launched by the Government of India in September 2022, which targets a reduction in logistics costs as a percentage of GDP. Speaking on the occasion, Shri Rajesh Kumar Singh, Secretary of DPIIT, emphasized the critical role of data-driven analysis in understanding and optimizing logistics expenses. The collaborative effort involves a detailed study expected to be completed within a year, with NCAER entrusted to deliver actionable insights that could potentially reshape the logistics landscape in India.
The initiative has garnered positive responses from stakeholders across the logistics sector, including government officials, industry professionals, and academic circles. Suggestions during initial consultations highlighted the need to identify high-value and high-volume commodities for in-depth analysis. Additionally, stakeholders emphasized the inclusion of intangible factors such as delays and the investor-friendly aspects of logistics efficiency.
The study will integrate primary data collection methods with secondary surveys to comprehensively assess trade flows, product types, industry dynamics, and origin-destination pairs. Such a structured approach, facilitated by an institutionalized data collection framework, is poised to provide valuable inputs for industry stakeholders and policymakers alike. Regular assessment and monitoring of logistics costs are crucial for enhancing industry competitiveness and informing policy interventions. The forthcoming report from NCAER promises to offer nuanced insights that could catalyze strategic reforms and bolster India’s logistics infrastructure in the years ahead.
