The DPIIT, under the Ministry of Commerce & Industry, has entered into an MoU with NCAER in New Delhi to collaborate on developing and assessing logistics costs in India. This partnership aims to create a detailed framework for nationwide logistics cost assessment, conduct a comprehensive study for the fiscal year 2023-24, and analyze variations in costs across different routes, modes, products, cargo types, and service operations. Dr. Anil Sharma and Dr. S K Ahirwar signed the MoU, which also involves identifying major factors influencing logistics across various sectors.
During the signing event, Secretary Rajesh Kumar Singh highlighted the importance of data-driven evaluations in understanding logistics costs. A subsequent panel discussion engaged senior government officials, GSTN representatives, multilateral institutions, industry leaders, and academics, focusing on the diverse nature of the logistics sector. Stakeholders suggested prioritizing high-value, high-volume commodities for detailed study and emphasized considering intangible costs such as delays and investor-friendly business environments.
NCAER has been entrusted with conducting this detailed study and is expected to deliver the report within a year, aiming to significantly impact India’s logistics sector. This initiative supports the National Logistics Policy’s objective of reducing logistics costs as a percentage of GDP, building on earlier reports like NCAER’s December 2023 study on Logistics Cost in India. Continuous assessment and monitoring of logistics costs are crucial for guiding industry practices and policymaking, necessitating robust data collection methods and periodic surveys of trade flows, product types, and industry trends.
