A task force will be set up for formulating a framework to determine logistics costs in the country, the commerce and industry ministry has said. It was decided in a workshop organised by Department for Promotion of Industry and Internal Trade (DPIIT) on the subject, on Monday.
The task force members would include representatives from NITI Aayog, Ministry of Statistics and Programme Implementation (MOSPI), National Council of Applied Economic Research (NCAER), academic experts and other stakeholders. It “will be established for formulating a logistics cost framework in a time-bound fashion,” it said.
The workshop on logistics cost framework was organised in partnership with Asian Development Bank (ADB). Speaking at the workshop, Commerce and Industry Minister Piyush Goyal suggested taking note of India’s geography, terrain, size and complexities, trade volume and value etc while calculating the logistics cost.
He said e-commerce, smarter free trade agreements, adopting international quality standards, good manufacturing practices, leveraging on successful startups ecosystem, drone technology, artificial intelligence and centre-state partnerships will work towards catalyzing India’s development.
The government is going by certain estimates which suggest that logistics cost in India stands at about 13-14 per cent of the country’s GDP. The government has rolled out a national logistics policy and PM Gati Shakti initiative to boost competitiveness of industry and cut logistics cost.